EV startup VinFast will break ground on the $2 billion first phase of its manufacturing plant in New Hill, North Carolina, on Friday, the company announced last week.
The manufacturing facility project will be built in two phases, a VinFast spokesperson told Manufacturing Dive in an email Monday. The first phase is designed to produce 150,000 vehicles yearly, focusing on VinFast’s VF 7 and two models of the VF 8, as soon as the factory is operational, the spokesperson said.
The upcoming automotive assembly and battery manufacturing plant will create 7,500 jobs and is expected to begin production in 2025.
The facility will have three main areas: electric cars and buses production and assembly, EV batteries production and ancillary industries for suppliers, according to the company’s release from last year.
Phase two of the project will expand and increase the factory’s scale, the spokesperson said. The company will continue to invest in the New Hill factory in various stages after the factory becomes operational.
“It is too early to provide details at this stage, but this substantial investment demonstrates VinFast’s commitment to establishing a state-of-the-art electric vehicle manufacturing complex in North Carolina,” the company said.
The facility will be the first North American plant for the Vietnam-based startup and the first automotive assembly and battery manufacturing plant for North Carolina, a state release noted last year.
“When it begins operations, the factory will be VinFast’s primary supplier of electric vehicles to the North American market, allowing us to optimize production and business activities,” VinFast Auto CEO Le Thi Thu Thuy said in a statement.
The New Hill plant project was originally set to begin construction last year, but the phase one date was adjusted due to planning and “meticulous preparations,” the spokesperson said.
VinFast worked to ensure that all necessary permits, resources, and partnerships were in place to execute the project flawlessly,” the spokesperson told Manufacturing Dive.
VinFast, a subsidiary of Vietnam-based conglomerate, Vingroup, was also awarded a $1.2 billion incentive package from the state for this project last year, according to the press release.
Other manufacturing titans are expanding their manufacturing footprint in North Carolina. Toyota is investing another $2.1 billion toward its EV battery factory in Liberty to help boost the SUV’s production. And German-based Bosch is planning a $130 million expansion at its Lincolnton facility to support the production of power tool accessories.