The Vietnam lithium ferro phosphate battery market is emerging as leading player in Southeast Asia’s energy storage sector. This growth is supported by rising electric vehicle adoption and expansion of renewable energy. As of 2025, country’s electric vehicles market saw 50% increase in demand for lithium ferro phosphate battery. Furthermore, the ongoing shift towards renewable energy is creating significant demand for efficient and long-life battery solutions. This creates demand for lithium ferro phosphate battery due to their high thermal stability and long-life that exceed 4000 charging cycles. The government is also supporting the market by providing tax breaks, investment incentives, and other reforms, making lithium ferro phosphate battery market a competitive sector.
What’s Driving Lithium Ferro Phosphate Battery Market in Vietnam?
- The rising adoption of electric vehicles is significant driver for lithium ferro phosphate battery demand in the country. As of 2025, electric vehicles sales in Vietnam reached 250,000 units. The lithium ferro phosphate batteries are preferred in electric vehicle applications as they have superior safety profile and thermal stability. Moreover, lithium ferro phosphate batteries are more environmentally friendly and cost effective. Thus, reduces overall cost for electric vehicle production cost.
- The increasing technology advancement in battery design is fuelling the Vietnam lithium ferro phosphate battery market. The new designs include integration of liquid cooling systems and smart battery management systems which improves performance and lifespan of lithium ferro phosphate batteries. Furthermore, use of nanotechnology in lithium ferro phosphate battery reduces charging times by 30% and increases cycle life by 20%.
- The country’s push towards renewable energy is also a major contributor to growing lithium ferro phosphate battery market. As of 2025, Vietnam generates 18% of its total electricity from renewable sources. This is supported by increasing investments in solar and wind power projects. The lithium ferro phosphate batteries are used in Battery Energy Storage Systems as these batteries are ideal for stabilizing the grid and providing backup power.
Market Competition
The Vietnam lithium ferro phosphate batteries market is moderately competitive and is characterized by mix of domestic manufacturers and global giants. The key players dominating the market includes VinES, PINACO, and Sunwoda. VinES is a leading player and known for its advanced domestic battery production capabilities. Recently the company partnered with Taiwan’s ProLogium Technology to develop solid-state batteries which aims to enhance energy density and safety for electric vehicles. PINACO supplies lead-acid batteries to a major portion of domestic market. The company is exploring opportunities to diversify its lithium-based technologies to meet evolving market demand. Meanwhile, Sunwoda announced its plan to invest nearly USD 280 million in 2024 for constructing new battery plant in Vietnam.
Heavy Reliance on Imported Raw Materials
The Vietnam lithium ferro phosphate battery market is witnessing a major challenge of heavy reliance on imported raw materials. This raw material reliance is creating global supply chain disruption and price volatility which impacts production costs and time. The country relies on major lithium-producing countries including China and South Korea for its lithium supplies. However, businesses are mitigating this challenge by securing strategic investments and diversifying supply sources.
Future Outlook
The Vietnam lithium ferro phosphate batteries market is set to undergo rapid transformations through 2030. The market will experience growing demand for electric vehicle related LiFePO₄ batteries as country aims to exceed 1 million electric vehicles on road by 2030. The Vietnam aims to generate 30% of its electricity from renewable sources by 2030, fuelling demand for lithium ferro phosphate batteries as these batteries are used in Battery Energy Storage Systems (BESS) due to their high energy density and ability to operate effectively. The Binh Phuoc solar project will contribute to 50% increase in demand for lithium ferro phosphate batteries. Further, Vietnam’s emergence as hub for battery manufacturing with growing investments will lead to innovation in lithium ferro phosphate batteries. Moreover, government initiatives and plans for introducing national recycling program for battery waste will also contribute to growth in Vietnam lithium ferro phosphate battery market.
Consultant at Nexdigm In their latest publication “Vietnam Lithium Ferro Phosphate Battery Market Outlook to 2030: By Application (Electric Vehicles, Renewable Energy Storage, Industrial Applications), By Battery Type (Prismatic, Cylindrical, Pouch), By Region (North, South, East, West)” believe that by localising raw material sourcing and focusing on advanced battery technologies, businesses can gain competitive advantage in Vietnam lithium ferro phosphate battery market.