Vietnam's biggest conglomerate Vingroup said on Sunday it had started building a $174 million battery cell plant for its VinFast electric vehicles business so the company can own its battery supply chain.

VinFast became the country's first fully fledged domestic car manufacturer when its gasoline-powered models built under its own badge hit the streets in 2019. It is betting on the U.S. market, where its electric SUVs and a battery leasing model are expected to make their debut next year.

The battery plant, Vietnam's first EV battery project is located in central province of Ha Tinh, on a 8-hectare (20 acre) plot.