Vietnamese automaker VinFast is making a bold play into the electric vehicle (EV) market with a proposition guaranteed to turn heads: letting consumers choose to purchase electric cars either with or without batteries. This innovative approach, coupled with a strong commitment to battery recycling and repurposing, highlights the company’s dedication to making EVs more accessible and sustainable.
Lowering initial cost, opening up investment opportunity
In addition to purchasing an EV with a battery outright, customers can buy a VinFast car separately at a lower price while paying a small monthly fee for the battery, just like how you pay each month for phones, cable TV, or internet access. This battery subscription model aims to break down the barrier of high upfront costs often associated with EVs. For instance, buyers who opt for a battery subscription can save nearly ₱200,000 for the VF 5, a significant amount for young families or eco-conscious young professionals.
VinFast’s subscription program also offers potentially long-term savings on repair and maintenance costs of the battery, as the automaker offers free maintenance and battery replacement whenever its capacity falls below 70%. This extends the warranty for the entire ownership period, as VinFast retains ownership of the battery and remains responsible for its condition. This provides customers with peace of mind and potential cost savings, especially considering that batteries are the most expensive component in an EV.
This approach also addresses concerns in the secondhand market as VinFast’s battery ownership model mitigates the risk for used EV buyers who might be wary of potential battery replacement costs. Since VinFast covers these costs, used EV buyers are shielded from financial uncertainty, making pre-loved VinFast EVs a more attractive option.
VinFast’s solution for sustainable EV battery
Beyond the innovative subscription model, VinFast is deeply committed to environmentally responsible battery management. This commitment begins with their product design, where they primarily use Lithium Iron Phosphate (LFP) batteries, known for their longevity, safety, and reduced reliance on scarce resources like cobalt and nickel. This enhances the performance and safety of their vehicles and simplifies the recycling process and minimizes potential environmental impacts.
To further their battery recycling efforts, VinFast has also established strategic partnerships. In 2022, they partnered with Li-Cycle, a leading lithium-ion battery recycler, whose innovative technology allows for the recovery of up to 95% of battery materials. This closed-loop process ensures that recovered materials can be used to manufacture new batteries, creating a sustainable cycle for these valuable resources. VinFast is also exploring repurposing solutions for spent batteries. In 2023, they signed a memorandum of understanding with Japan’s Marubeni Corporation to collaborate on developing battery energy storage systems using recycled EV batteries. These systems can store excess energy from renewable sources, providing a reliable and sustainable power source.
As the EV market continues to grow, the demand for sustainable and environmentally responsible practices throughout the product life cycle will increase. By investing in recycling technologies and partnering with industry leaders, companies like VinFast are demonstrating their commitment to ensuring their batteries have a positive impact beyond their use in vehicles. VinFast’s pioneering battery subscription policy, coupled with their dedication to sustainable battery lifecycle management, positions them as a leader in the push for a greener and more electrified future in Southeast Asia and beyond.
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