Vietnam Battery Market, By Type (Primary Battery, Secondary Battery), By Chemistry (Lithium-Ion, Lead-Acid, Zinc-Manganese Dioxide, Nickel-Metal Hydride, Others), By Application (Automotive, Industrial, Portable), By Region, Competition Forecast & Opportunities, 2028F

Vietnam Battery market is predicted to proliferate during the forecast period 2024-2028F, owing to various driving factors such as rising demand for continuous electricity, increasing investment in renewable energy, and union government’s focus on increasing EVs vehicles adoption as compared to petrol & diesel vehicles, among others.

A battery is a device that transforms chemical energy directly into electrical energy via an electrochemical oxidation-reduction reaction. This kind of reaction involves the transfer of electrons from one material to an alternative with the help of an electrical circuit. These batteries are charged with the help of electric current. Batteries are divided into various types, for instance, lead-acid batteries, lithium-ion batteries, nickel-metal hydride batteries, nickel-cadmium batteries, nickel–zinc batteries, flow batteries, among others. Also, multiple electrochemical cells that are connected to external inputs and outputs are used to make batteries for their clients. There exist multi-fold opportunities and future battery technologies across several sectors at a global scale.

There is a growing requirement for energy backup due to the rising demand for uninterrupted power supply across the region. In power outages, batteries serve as a backup power source. The rechargeable and scalability feature of the batteries are the two major advantages. The need for a reliable supply has increased, necessitating a growing need for energy backup across the countries. Batteries are provided as a backup power source during power interruptions or periods of heavy demand.

Especially in the electric two-wheeler (E2W) market, Vietnam has the potential to become the leader in EV demand and EV production, in the Association of Southeast Asian Nations (ASEAN). Vietnam’s electric two-wheeler market is the second largest in the world after China’s. Thus, the market for electric passenger cars (EPVs) is increasing significantly. In Vietnam, local manufacturers dominate the EPV and E2W markets. However, more measures are needed for the country to fully realize its capacity in the Electrical Vehicle (EV) market and EV production. This current EV production and its supply chain, EV demand, and EV charging infrastructure are likely to rise the demand for battery across the country. Accelerating electric vehicle expansion not only contributes to achieving the country’s climate goals, reducing GHG emissions, and improving air quality, but also supports the country’s economic improvement.

In July 2022, Vietnamese government decided to approve the action program on green energy transition and reducing carbon & methane emissions in the transport sector, which is the objective to achieve net-zero emissions in the transport sector by the end of 2050. The outcome sets specific national objectives related to encouraging electric vehicle development, including

• In the first period, from 2022 to 2030, Vietnam government is expected to promote the production, assembly, import, and employ of electric vehicles (EVs), and develop charging infrastructure.
• In the second period, from 2031 to 2050, the production and import of fossil-fueled cars, motorcycles, and mopeds will be directed for domestic use till 2050. Additionally, demanding that 100% of road motorized automobiles be powered by electric & green energy, and rising charging infrastructure system across the country by the end of 2040.

National Policy In the Country

Reduce Excise Tax on Electric Cars -

In January 2022, the 15th National Assembly approved a law, in which the excise tax rate for electric cars was reduced to 1 – 3% and 4 – 11%.

Reduced Registration Fee for Electric Cars -

ChallengesLimited Raw Materials found at In The Country

Key materials in vehicle batteries are nickel and lithium, and Vietnam is potentially a source of nickel and lithium. Vietnam’s total nickel and lithium reserves are estimated at 3.6 million tons and 1 million tons respectively. However, the research, experience, and technology needed to exploit these minerals in Vietnam are still very limited. Until 2022, there was only one company studying the feasibility of nickel extraction in Son La province, Ban Phuc Nickel Mine, Ltd. Ninety percent of this company’s shares are owned by Blackstone Minerals, an Australian company, and 10% are owned by Son La Engineering and Mechanical Joint Stock company. Therefore, above mentioned factors are likely to hinder the market growth of battery in the upcoming years.

Recent Development

• In March 2021, VinFast, an automotive subsidiary established by Vietnam’s one of the largest private group named “Vingroup” and the first local automotive brand in Vietnam, announced the signing of a memorandum of cooperation (MOU) with the solid-state battery company Huineng Technology.
• As of 2020, the Vietnam government installed rooftop solar PV capacity reached 9,296 MW with 101,029 installations. Battery storage is a necessary part of the solar rooftop power generation process, as solar energy is intermittent and unavailable during the night. Lithium-ion battery-based solar home systems are expected to increase in Vietnam, increasing the demand for stationary batteries across the nation.

Market Segmentation

Company Profiles

Vision Group, Leoch International Technology Limited, PINACO, Saite Power Source (Vietnam) Co. Ltd, Heng Li (Vietnam) Battery Technology Co. Ltd, Ritar Power (Vietnam) Company Limited, TIA Sang Battery Joint Stock Company, GS Battery Vietnam Co. Ltd, Eni- Florence Vietnam Co. Ltd, Kung Long Batteries Industrial Co. Ltd., among others, are the major players that are driving the growth of the Vietnam battery market.