Marubeni Signs a Memorandum of Understanding with VinFast to Repurpose Used EV Batteries in a Circular Economy

Dec. 19, 2023
Marubeni Corporation

Marubeni Corporation (hereinafter, “Marubeni”) and VinFast Trading and Production Joint Stock Company (hereinafter, “VinFast”), the first automobile manufacturer in the Socialist Republic of Vietnam (hereinafter, “Vietnam”), established by Vingroup Joint Stock Company (hereinafter, “Vingroup”), the largest conglomerate group in Vietnam, signed a memorandum of understanding (hereinafter, “MOU”) on December 5, 2023 and exchanged copies of the MOU in the presence of Prime Minister of Vietnam Pham Minh Chinh and Japanese Minister of Economy, Trade and Industry Saito regarding cooperation in the secondary use of electric vehicle (hereinafter, “EV”) batteries in a circular economy.

Under the MOU, the two companies aim to conduct a demonstration of secondary use of EV batteries manufactured by VinFast as battery energy storage systems (“BESS”) and to collaborate in the creation of businesses that will promote the utilization of used EV batteries and the establishment of a circular economy model.

MOU Exchange Ceremony MOU Exchange Ceremony

MOU Signing Ceremony MOU Signing Ceremony

The worsening stress on the electricity grid due to intermittent resources is becoming global social issue hindering the further installation of renewable energy power plants. In addition, the optimization of EV battery values is a key focus of EV OEMs in order to promote EV penetration around the world. Marubeni invested in B2U Storage Solutions, Inc. (hereinafter, “B2U”) in 2021, a U.S. start-up company that initiated the second life use of EV batteries to provide resiliency and flexibility to the electricity grid. Under the MOU, the parties will use VinFast’s EV batteries coupled with B2U’s proprietary technology to demonstrate that EV batteries can easily and inexpensively be repurposed into stationary batteries without dismantling, testing, and repackaging batteries.

Supply Chain Diagram Supply Chain Diagram

In May 2023, Marubeni Green Power Vietnam Co., Ltd, a wholly owned subsidiary of Marubeni Corporation, entered into an agreement with VinES Energy Solutions Joint Stock Company (hereinafter, “VinES”), a EV battery and BESS manufacturer of Vingroup. This MOU will mark the expansion of its collaboration to the field of building a circular economy system.  

Through this MOU, Marubeni aims to strengthen its strategic partnership with Vingroup and, together with Vingroup, contribute to the Vietnamese government’s goal of achieving virtually zero greenhouse gas emissions by 2050 and to the global efforts to build a decarbonized society. Marubeni is working towards the “creation of new green businesses” envisioned under its Mid-Term Management Strategy “GC2024” by actively supporting innovative start-ups tackling the global challenge of building a decarbonized society not only through investments but also by providing various assistance in business development and leveraging its existing business platforms and networks. 

Site of B2U Site of B2U

VinFast Vehicle VinFast Vehicle

VinFast Overview:  
Company Name: VinFast Trading and Production Joint Stock Company
Location: Hai Phong, Socialist Republic of Vietnam
Shareholder: VinFast Auto Ltd. 99.9%
VinFast Auto Ltd. Publicly listed to NASDAQ in August this year.
Establishment: 2017
Representative: Le Thi Thu Thuy
Main Business: EV manufacturing business in Vietnam. Production of ICE vehicles started in 2020 and EVs in 2021; announced plans to stop production of ICE vehicles and switch completely to EV production by the end of 2022. In addition to Vietnam, the company is expanding its sales area in other countries globally.
Website: https://vinfastauto.com/
Vingroup Overview:  
Company Name: Vingroup Joint Stock Company
Location: Hanoi, Socialist Republic of Vietnam
Major Shareholder:
 (As of December 31, 2022)
Vietnam Investment Group LLC. (32.58%)
Pham Nhat Vuong (19.18%)
VMI JSC (6.29%)
SK Invetment Vina II Pte, Ltd. (5.98%)
Establishment: 1993
Representative: Nguyen Viet Quang
Main Business: Real estate, hospitality, retail, vehicle manufacturing, education, medical, services, other.
Website: https://vingroup.net/EN
B2U Overview  
Company Name: B2U Storage Solutions, Inc.
Location: California, United States
Representative: Freeman Hall
Main Business: Developing and providing solutions for repurposing EV batteries for stationary use.
Website: https://www.b2uco.com/

Related News Releases:
・May 18, 2023 
Memorandum of Understanding with VinES for the Development of a Battery Energy Storage System Project in Vietnam

・October 18, 2021
Marubeni Closes Investment in B2U Storage Solutions -Repurposing Second Life Batteries-