The joint venture will be located in the automaker’s factory in the southern port city of Hai Phong, where it will manufacture lithium-ion battery packs for VinFast’s electric scooters that are being made now, and for electric cars to be produced in the future, VinFast said in a statement.

The factory, which will be built on a 2,000 square meter area, will employ Vietnamese workers who will be trained in technology provided by LG Chem.

The automaker, a unit of Vietnam’s largest conglomerate Vingroup, rolled out its first made-in-Vietnam cars last month, the first steps in a $3.5 billion automaking venture.

VinFast has recently sent its SUV and sedan to European and Asian countries for quality testing and is set to deliver preordered vehicles in the second and third quarter.