In a significant stride for the global electric vehicle (EV) supply chain, Kangpu (4739), a leading battery materials manufacturer, has officially launched its new VINACOREMAX factory in Quang Ninh Province, Vietnam. This facility, dedicated to producing positive electrode materials for ternary lithium batteries—specifically nickel sulfate—marks a pivotal moment for both the company and the EV industry at large. The opening ceremony, held on September 17, 2025, was a grand affair, attended by a host of international dignitaries, industry leaders, and government officials.
Chairman He Jicheng of Kangpu personally presided over the event, underscoring its significance. Among the distinguished guests was Hiroaki Hotada, Chairman of the Japan Battery Association and CEO of PPES (Prime Planet Energy & Solutions, Inc.), the joint venture between Toyota Motor and Panasonic. Also present were customer representatives from Asia, Europe, and the United States, as well as officials from the Quang Ninh provincial government, all signaling robust support for Kangpu’s regional expansion and its broader ambitions.
The new VINACOREMAX plant is designed with an annual production capacity of 25,000 tons of nickel sulfate, a key raw material for high-nickel ternary lithium batteries. This scale of output is no small feat. According to MoneyDJ, Kangpu’s Vietnam factory began trial production in September 2025 and is currently undergoing rigorous customer verification processes. Once product sample validations are complete, shipments will commence, marking the transition from test runs to full-fledged commercial operation.
The timing of this expansion is no coincidence. As Kangpu points out, the global penetration of electric vehicles is on the rise, pushing demand for longer-range and higher-energy-density batteries. Ternary lithium batteries, which include lithium nickel cobalt manganese oxide (NCM) chemistries, are increasingly moving toward higher nickel content to meet these performance benchmarks. Nickel sulfate, the plant’s primary output, is thus at the heart of this technological shift. "The establishment of the Vietnam factory not only allows us to respond immediately to market demand but also further strengthens Kangpu’s role in the battery materials supply chain," the company emphasized, according to Cnyes.
But why Vietnam? Strategic trade advantages played a major role in Kangpu’s decision. The country’s participation in regional economic partnerships such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) offers significant tariff benefits. These agreements allow Kangpu to export battery materials to key Asian markets with reduced or zero tariffs, lowering procurement costs for customers and boosting the competitiveness of its products. As Kangpu noted, "Vietnam’s production is expected to reduce customer procurement costs and enhance product competitiveness."
International players have taken note. Both global battery and automotive giants have voiced their support for the new facility. They see the launch not only as an increase in production capacity but also as a testament to the growing resilience and flexibility of the battery materials supply chain. The presence of PPES’s CEO and other industry leaders at the opening ceremony underscores the factory’s potential impact.
Looking beyond immediate production, Kangpu is keenly focused on sustainability and circularity—two buzzwords that are fast becoming central in the battery industry. The new VINACOREMAX production line isn’t just about making more nickel sulfate; it’s also a certified site for battery material recycling. Both the Taiwan and Vietnam operations have been set up to handle the recycling and reprocessing of retired batteries, feeding recovered materials back into the supply chain. This “closed-loop” strategy aims to reduce dependence on virgin mineral resources and to meet the increasingly stringent Environmental, Social, and Governance (ESG) requirements of global automakers and battery manufacturers.
"Kangpu stresses the importance of internationalization and sustainable development, collaborating globally to accelerate the electric vehicle industry’s transition to circular sustainability," MoneyDJ reported. The company’s approach is to turn end-of-life batteries into new resources, closing the loop and reducing the environmental footprint of battery production. This isn’t just a nod to environmentalism; it’s a practical response to both resource scarcity and regulatory demands from automakers and governments worldwide.
PPES, the joint venture between Toyota and Panasonic, is itself a major player in the battery space, focusing on large-capacity, high-efficiency ternary lithium and solid-state batteries for EVs. The firm is particularly committed to circular use and high-efficiency energy solutions, making it a natural partner and supporter of Kangpu’s closed-loop ambitions.
As the EV revolution accelerates, the importance of reliable, sustainable, and cost-effective battery materials cannot be overstated. Kangpu’s Vietnam factory is positioned at the intersection of these trends. By leveraging regional trade agreements, the company is not only able to offer competitive pricing but also to ensure a steady supply of critical battery ingredients to customers across Asia and beyond.
Of course, the road ahead is not without its challenges. The battery industry faces ongoing volatility in raw material prices, ever-evolving environmental standards, and fierce global competition. But Kangpu’s multifaceted strategy—combining increased capacity, strategic location, sustainability, and strong international partnerships—appears well-suited to navigate these headwinds.
The opening of the VINACOREMAX plant is more than just a ribbon-cutting moment. It’s a declaration that the battery materials industry is evolving—becoming more global, more sustainable, and more responsive to the rapid pace of change in electric mobility. The presence of key figures from across the battery and automotive sectors at the ceremony is a clear sign that this development is being watched closely by the industry’s heavyweights.
For Kangpu, the Vietnam factory is a milestone on the journey toward internationalization and sustainable growth. By integrating advanced recycling capabilities and capitalizing on favorable trade conditions, the company is setting a new standard for how battery materials are produced, sourced, and reused. As the world races toward an electrified future, such forward-thinking moves could well define the next era of battery innovation.
With trial production underway and shipments soon to follow, all eyes will be on Kangpu to see how its Vietnam venture shapes the broader landscape of battery materials supply—and, by extension, the future of electric vehicles worldwide.
