Vietnamese automaker VinFast has tied up with Chinese company Gotion High-Tech to research and produce batteries for electric vehicles.

Under a newly-signed memorandum of understanding, the two companies will work on building the first lithium iron phosphate (LFP) battery plant in Vietnam, a statement released by Vinfast.

LFP battery is currently the most popular battery technology in the global electric vehicle market, with advantages including safety, competitive pricing, and suitability for small and medium-sized electric cars.

The cooperation with Gotion High-Tech, a leading battery manufacturer in the world, is among Vinfast’s efforts to develop its new product line of smart electric cars and supply chain autonomy, said Thai Thi Thanh Hai, vice president of Vinfast’s parent company Vingroup.

The move will also contribute to the realization of Vinfast’s overall goal of establishing a clean energy ecosystem and reducing carbon emissions in Vietnam as well as in the world, Hai said.