Vietnam’s VinFast (NASDAQ:VFS) announced Monday that they have entered into a memorandum of understanding with Japan's Marubeni Corp to handle the recycling of used EV batteries.
According to VinFast’s statement, VinFast will provide the used batteries, and Marubeni will transform them into cost-effective Battery Energy Storage Systems (BESS) that boast streamlined manufacturing processes, as detailed in the Vietnamese company's official statement.
The process will not require disassembly, processing and/or repackaging of the batteries.
This partnership aligns with both companies' commitment to "establish a circular economic model," as highlighted in their joint efforts.
VinFast, established in 2017 and supported by Vietnam's largest conglomerate Vingroup, made its debut on Nasdaq in late August.
Shares of VFS are down 3.17% in early trading Monday morning.