The typical process of buying an electric vehicle involves paying for the entire vehicle, including the battery, outright. While this has been the typical model since EVs have been offered, it leaves owners of these vehicles, as well as potential second-hand buyers with a conundrum: what happens when the battery degrades? This is a pressing concern for many potential EV buyers who might be wary of potential battery replacement costs.
Battery subscription
Vietnamese automaker, VinFast, hopes to change this conventional model their new battery subscription model. This allows consumers to choose whether to purchase their electric cars either with or without batteries. This approach, coupled with a strong commitment to battery recycling and repurposing, highlights the company’s dedication to making EVs more accessible and sustainable.
In addition to purchasing an EV with a battery outright, customers can buy a VinFast car separately at a lower price while paying a small monthly fee for the battery, just like how you pay each month for phones, cable TV, or internet access. This battery subscription model aims to break down the barrier of high upfront costs often associated with EVs. Buyers who opt for a battery subscription can save nearly ₱200,000 for the VF 5.
Exclusive promo
Reserve a VF 5 between August 14 and September 30, 2024, with a refundable ₱5,000 reservation fee, and get a range of discounts and perks — including a chance to receive an additional special discount.
Potential discounts varying based on your chosen purchasing path. These include a direct discount of ₱50,000, freebies valued at over ₱50,000 (including a wall-mounted charger and installation), and additional support ranging from ₱69,000 to 99,000, depending on your payment method and whether you opt for the battery subscription. As a bonus, 100 lucky customers who reserve and purchase without the battery subscription could win an additional ₱95,000 special discount.
To simplify the decision-making process, VinFast has outlined four unique discount combinations for purchasing the VF 5.
Without Battery Subscription & Financing: ₱50,000 initial discount + ₱48,000 downpayment discount, bringing the price to ₱1,141,000.
Without Battery Subscription & Cash/Bank PO: ₱50,000 initial discount + ₱99,000 additional discount, reducing the price to ₱1,042,000.
With Battery Subscription & Financing: ₱50,000 initial discount + ₱47,000 downpayment discount, lowering the price to ₱942,000.
With Battery Subscription & Cash/Bank PO: ₱50,000 initial discount + ₱69,000 additional discount, making the VF 5 available for just ₱873,000.
Among these options, the most substantial savings — a total of ₱149,000 — are available to customers who purchase without the battery subscription and choose Cash/Bank PO as their payment method, bringing the VF 5’s price to an attractive ₱1,042,000. Even with the battery subscription, significant discounts make the VF 5 accessible at ₱873,000.
Additionally, the VF 5 comes with a seven-year/160,000 km warranty on powertrains, a seven-year/unlimited mileage warranty on the battery (without battery subscription), and free maintenance and replacement if battery capacity drops below 70% (with battery subscription), the VF 5 offers long-term peace of mind.
No battery worries
VinFast's subscription program also offers potentially long-term savings on repair and maintenance costs of the battery, as the automaker offers free maintenance and battery replacement whenever its capacity falls below 70%. This extends the warranty for the entire ownership period, as VinFast retains ownership of the battery and remains responsible for its condition. This provides customers with peace of mind and potential cost savings, especially considering that batteries are the most expensive component in an EV.
This approach also addresses concerns in the secondhand market. VinFast's battery ownership model mitigates the risk for used EV buyers who might be wary of potential battery replacement costs. Since VinFast covers these costs, used EV buyers are shielded from financial uncertainty, making pre-loved VinFast EVs a more attractive option.
A more sustainable EV model
Beyond the subscription model, VinFast is committed to environmentally responsible battery management. This commitment begins with their product design, where they primarily use Lithium Iron Phosphate (LFP) batteries, known for their longevity, safety, and reduced reliance on scarce resources like cobalt and nickel. This enhances the performance and safety of their vehicles and simplifies the recycling process and minimizes potential environmental impacts.
A second life for batteries
To further their battery recycling efforts, VinFast has also established strategic partnerships. In 2022, they partnered with Li-Cycle, a leading lithium-ion battery recycler, whose innovative technology allows for the recovery of up to 95% of battery materials. This closed-loop process ensures that recovered materials can be used to manufacture new batteries, creating a sustainable cycle for these valuable resources. VinFast is also exploring repurposing solutions for spent batteries. In 2023, they signed a memorandum of understanding with Japan's Marubeni Corporation to collaborate on developing battery energy storage systems using recycled EV batteries. These systems can store excess energy from renewable sources, providing a reliable and sustainable power source.
As the EV market continues to grow, the demand for sustainable and environmentally responsible practices throughout the product life cycle will increase. By investing in recycling technologies and partnering with industry leaders, companies like VinFast are demonstrating their commitment to ensuring their batteries have a positive impact beyond their use in vehicles. VinFast's pioneering battery subscription policy, coupled with their dedication to sustainable battery lifecycle management, positions them as a leader in the push for a greener and more electrified future in Southeast Asia and beyond.