Vietnamese electric vehicle (EV) manufacturer VinFast announced on Monday that it has entered into a memorandum of understanding with Japan's Marubeni Corp (8002.T) to facilitate the recycling of used EV batteries.
Under the agreement, VinFast will supply used batteries to Marubeni, which will then repurpose them into cost-effective Battery Energy Storage Systems (BESS) designed for easy manufacturing, according to a statement released by the Vietnamese company.
Crucially, the recycling process outlined in the deal eliminates the need for disassembly, processing, and repackaging of the batteries. The memorandum was reportedly signed over the weekend during a regional leaders summit in Japan.
The collaborative effort between VinFast, established in 2017 and backed by Vietnam's largest conglomerate Vingroup, and Marubeni aims to establish a circular economic model, contributing to the sustainable development of EV technology.
VinFast, which made its Nasdaq debut in late August, is positioning itself as a key player in the electric vehicle market, while the partnership with Marubeni underscores a commitment to environmentally responsible practices in the growing industry.