Vietnamese electric vehicle manufacturer VinFast Auto has announced a significant partnership with Indian clean-tech startup BatX Energies to develop a comprehensive battery recycling ecosystem in India. This collaboration aims to support sustainable practices in the electric vehicle (EV) sector by focusing on battery recycling, material recovery, and repurposing.
Building a Sustainable Future
Under the agreement, BatX Energies will offer end-to-end recycling services for high-voltage EV batteries utilized in VinFast’s manufacturing operations and after-sales support in India. This initiative involves the extraction and recovery of essential raw materials such as lithium, nickel, and cobalt, which will be reintegrated into the battery production cycle.
Pham Sanh Chau, CEO of VinFast Asia, emphasized the importance 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, established as a clean-tech company focused on battery recycling and rare metal recovery, aims to facilitate India’s growing EV ecosystem. The company will ensure traceability throughout the recycling process, promoting transparency and regulatory compliance, which are increasingly critical in an environmentally conscious market.
Utkarsh Singh, CEO of BatX Energies, remarked on the shared vision, saying, “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.”
Expanding Horizons in Circular Economy
The partnership goes beyond traditional recycling. Both companies see potential in urban mining and second-life applications for used batteries, which can position India and Vietnam as leaders in circular economy innovations. By developing these initiatives, they aim to create a model for future EV collaborations in emerging markets.
VinFast is aggressively pursuing its expansion in India, investing USD 500 million (approximately INR 4,290 crore) in a manufacturing facility located in Thoothukudi, Tamil Nadu, expected to be operational by July 2025. Once completed, the plant will have the capacity to produce up to 150,000 EVs annually, with a focus on exports to the Middle East and Africa.
Additionally, VinFast plans to introduce its first vehicles in India—the VF 6 and VF 7 electric SUVs—prior to the festive season. The company has already partnered with RoadGrid and myTVS for charging infrastructure and after-sales services, as well as with Global Assure for roadside assistance.
Implications for Industry and Investors
From a market perspective, this partnership solidifies VinFast’s position as an innovative EV manufacturer prioritizing vertical integration and sustainability. The collaboration marks a pivotal moment in India’s EV sector, where effective battery lifecycle management becomes essential for competitiveness, regulatory compliance, and environmental stewardship.
For investors, VinFast’s strategic alliances with infrastructure and recycling firms mitigate risks related to its operations in India, establishing a comprehensive supply and service ecosystem. BatX Energies, which recently closed a USD 5 million (about INR 42.90 crore) pre-Series A funding round, is now seeking to raise USD 20 million (approximately INR 171 crore) in Series A funding, poised to benefit significantly from the visibility and scale offered by this partnership.
In the fiscal year 2025, BatX reported revenues of USD 4.5 million (around INR 38.6 croreINR 10-12 million (approximately USD 1.2-1.5 million) in fiscal year 2026, driven by increasing demand for recycling and resource recovery as India accelerates its EV adoption.
This partnership transcends mere business collaboration; it establishes a framework for electric vehicle manufacturers to scale sustainably in emerging markets. As challenges related to raw material scarcity and battery waste intensify, the focus on circularity becomes essential rather than optional.
As India positions itself as a hub for electric vehicles, partnerships like that of VinFast and BatX Energies will serve as critical building blocks for a sustainable and circular electric mobility ecosystem.
