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.

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.

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.

(C) 2023 Electronic News Publishing, source ENP Newswire