VinFast Auto, a leading electric vehicle (EV) manufacturer based in Vietnam, has entered into a significant partnership with Indian clean-tech startup BatX Energies. This collaboration aims to create a comprehensive battery recycling ecosystem in India, marking a substantial step towards sustainable manufacturing in the EV sector.
Strengthening Circular Economy Initiatives
Under the terms of the agreement, BatX Energies will deliver end-to-end recycling services specifically for high-voltage EV batteries utilized in VinFast India’s manufacturing operations and after-sales services. The recycling process will focus on extracting and recovering critical raw materials such as lithium, nickel, and cobalt, effectively reintegrating them into the battery production cycle.
This initiative aligns with both VinFast’s sustainability objectives and India’s commitment to a clean energy future, supporting environmental goals while addressing the increasing demand for EV infrastructure.
Pham Sanh Chau, CEO of VinFast Asia, emphasized the significance of this partnership, stating, “This partnership with BatX Energies is a big step towards building a sustainable circular battery ecosystem in India. We will reduce resource dependency, support national priorities and set a new benchmark for responsible innovation in electric mobility.”
BatX Energies’ Role in the Partnership
BatX Energies, established as a clean-tech company specializing in battery recycling and rare metal recovery, plays a crucial role in India’s emerging EV landscape. The company is committed to ensuring traceability, full transparency, and adherence to regulatory standards throughout the recycling process. These elements are increasingly vital in a world where environmental accountability is paramount.
Utkarsh Singh, CEO of BatX Energies, remarked on the partnership’s vision: “We share a belief in responsible innovation and resource circularity to strengthen the EV battery value chain. By providing sustainable end-of-life solutions for EV batteries, we are building infrastructure that can grow with the industry and create long-term environmental impact.”
The collaboration extends beyond mere recycling, encompassing urban mining, strategic material recovery, and second-life applications for used batteries. This comprehensive approach positions both India and Vietnam as leaders in circular economy innovation, potentially setting a benchmark for future EV partnerships in other emerging markets.
VinFast is actively expanding its presence in India, with plans to invest $500 million (~INR 4,290 crore) in a manufacturing facility located in Thoothukudi, Tamil Nadu, set to be operational by mid-2025. This plant is expected to produce up to 150,000 EVs annually, with plans for exports to the Middle East and Africa. Additionally, VinFast is preparing to introduce its first electric vehicles in India—the VF 6 and VF 7 SUVs—prior to the upcoming festive season.
The company has also secured partnerships with RoadGrid and myTVS for charging infrastructure and after-sales services, along with Global Assure for roadside assistance.
Implications for the EV Industry and Investors
From an industry perspective, this partnership reinforces VinFast’s position as an innovative EV manufacturer dedicated to sustainability and vertical integration. It represents a pivotal moment for India’s EV sector, where effective battery lifecycle management will become essential for maintaining competitiveness and adhering to environmental standards.
For investors, VinFast’s collaboration with infrastructure and recycling entities reduces operational risks by establishing a holistic supply and service ecosystem. BatX Energies, which recently secured $5 million (~INR 42.90 crore) in a pre-Series A funding round, is now seeking to raise $20 million (~INR 171 crore) in Series A financing. This partnership is expected to significantly enhance BatX’s scale and visibility within the industry.
In the fiscal year 2025, BatX recorded revenues of $4.5 million (~INR 38.6 crore) and is projected to achieve between $10 million and $12 million (~INR 103 crore) in fiscal year 2026, driven by the increasing demand for recycling and resource recovery in conjunction with India’s growing EV market.
This partnership signifies more than just a business arrangement; it serves as a model for how EV companies can responsibly scale operations in emerging markets. With the rising challenges of raw material scarcity, the environmental impact of mining, and the growing issue of EV battery waste, the shift towards a circular economy is no longer optional—it is essential.
As India positions itself as an EV hub, partnerships like that of VinFast and BatX Energies will be foundational to crafting a sustainable and circular electric mobility ecosystem for the future.
