By Greg Gao

(JW Insights) Jun 9 -- Xiamen Hithium Energy Storage Technology(海辰储能), a Chinese makers of energy storage systems and Growatt New Energy(深圳古瑞瓦特新能源), a battery maker, are weighing investments worth hundreds of millions of dollars in Vietnam, reported Reuters on June 8, citing industry and government sources.

The combined value of the investments could exceed $1 billion, according to one person with direct knowledge of the discussions.

A growing number of Chinese companies are launching or expanding manufacturing projects in Vietnam, a global export hub thanks to its array of free trade deals and cheap labour.

Xiamen Hithium Energy Storage Technology, a startup that is expanding in Europe and the U.S., has approached officials and industry managers in Vietnam to potentially invest up to $900 million to build a plant on more than 30 hectares of industrial land, the person said.

If the investment is finalised at that figure, the company would become one of the largest foreign investors in Vietnam.

A second source familiar with the discussions said the investment under consideration would be worth at least $500 million, said Reuters.

Hithium, which is based in the port city of Xiamen, southeastern China’s Fujian Province, said in a statement to Reuters that it had no new deals near closing. It also said it plans to expand its production capacity to 70 Gigawatts (GW) by the end of this year from just 15 GW now.

Founded in 2019, Hithium, which currently does not have a presence in Vietnam, specialises in manufacturing stationary energy storage products, including cells and larger containers that help manage the intermittent supply of energy from solar or wind farms.

Growatt New Energy, which leases a pre-fabricated plant in Vietnam, is planning to spend about $300 million to acquire about 15 hectares of industrial land to build a new factory, a source said. Growatt did not reply to requests for comment.

The company was established in 2010 and based in Shenzhen. It produces battery systems and energy storage inverters for residential and commercial use.

Both companies are in talks with multiple authorities and industrial parks about potential locations for their plants, according to the report from Reuters.