Vietnamese company producing batteries for VinFast, Honda, Thaco... wants to earn 11 billion per day

VinFast 's VF5 uses batteries manufactured by Pinaco - Photo: VF

Investing in new factory worth thousands of billions

Established in 1976, Southern Battery Joint Stock Company (Pinaco) is commonly known for two typical product lines: Dong Nai Battery and Con O Battery.

This enterprise is currently a supplier of batteries and accumulators for many major automobile manufacturers in Vietnam such as VinFast, Honda Vietnam , Thaco, Hyundai Thanh Cong... In particular, Pinaco supplies all CMF battery needs for the two car lines with the largest output of VinFast, VF5 and VF3.

In 2024, the domestic market will bring in more than VND 2,490 billion in revenue for Pinaco, equivalent to about 65% of total revenue.

This enterprise plans to invest over 1,000 billion VND to build a new factory in An Phuoc Industrial Park, Dong Nai province.

The factory covers an area of ​​6.5 hectares, with an equipment capacity of 1.3 million kWh/year. The company's management said that this year they will focus on accelerating investment progress to quickly meet the demand for CMF batteries for VinFast as well as foreign customers.

Foreign product competition

Currently, the company's products are exported to 44 countries and territories, of which batteries are exported to 10/11 Southeast Asian countries. Pinaco has no subsidiaries, only three manufacturing plants in Dong Nai and Ho Chi Minh City.

Despite being a brand with nearly 50 years of development, Pinaco is facing many challenges.

Decreased domestic consumption demand, combined with competition from cheap imported batteries, caused the company's sales volume to decline.

Pinaco's Board of Directors assesses that battery technology is changing rapidly with the emergence of many new technologies such as rechargeable batteries, fuel cells, lithium-ion batteries, etc.

Meanwhile, the carbon zinc battery products that Pinaco is producing belong to the old technology product group, the growth rate is slowing down, especially large batteries (R20, D-size) are declining sharply and the product life cycle is expected to "end in the near future".

On the contrary, lead-acid batteries are still highly valued due to their low cost, good recyclability and demand will continue to increase in the next 3-5 years when used for vehicles. Automobile and motorbike assembly companies also prioritize cooperation and use of products from domestic battery manufacturers such as Pinaco.

At the upcoming 2025 annual general meeting of shareholders, Pinaco's board of directors will submit to the meeting for approval a plan to issue more than 23.2 million shares to existing shareholders to increase capital.

The shareholder structure at Pinaco has not changed over the past year, with the Vietnam Chemical Group owning 51.4% of Pinaco's capital, The Furukawa Battery (Japan) owning 10.5%, and the Pinaco union owning 4.06%. Of which, Japanese shareholders have maintained their position as major shareholders at Pinaco since 2016.

The Vietnamese battery market is fragmented. Vietnamese companies such as Pinaco, Habaco or Tibaco are competing with a series of large foreign companies such as Vision Group (China), Kung Long (Taiwan), CSB (Taiwan)...

According to Vietdata, to produce an electric car using a large lithium battery that can generate electricity from 400 - 800V, manufacturers still need a 12V lead-acid battery to operate the lights, horn, wipers...

This is an opportunity for battery manufacturers in Vietnam to maintain production while redirecting resources and developing other advanced battery technologies. Lead-acid batteries are expected to continue to dominate the automobile and motorbike market while demand for lithium-ion batteries used in electric vehicles will continue to increase.

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Source: https://tuoitre.vn/cong-ty-viet-san-xuat-ac-quy-cho-vinfast-honda-thaco-muon-thu-11-ti-moi-ngay-20250403000716716.htm