0
Representatives from LG Energy Solution, Honda, and the City of Hanoi pose for a commemorative photo after signing a Memorandum of Understanding (MOU) for cooperation in establishing a public Battery Swapping Station (BSS) for electric two-wheelers on May 19. From the front left: Kim Jae-kwon, Head of Marketing Group for the Small Battery Business Division at LG Energy Solution; Dao Viet Long, Deputy Director of the Hanoi Department of Construction; and Kawabata, Head of the MPP Division at Honda. / LG Energy Solution

LG Energy Solution, Honda, and the City of Hanoi have joined forces to accelerate the adoption of electric motorcycles and establish battery swapping infrastructure. As the transition to eco-friendly transportation gathers full momentum in Vietnam—one of Southeast Asia's largest two-wheeler markets—competition to preempt the electric two-wheeler market is expected to intensify further.

LG Energy Solution announced on May 19 (local time) that it has signed a Memorandum of Understanding (MOU) with Honda and Hanoi City for "Cooperation in Establishing Public Battery Swapping Stations (BSS) for Electric Two-Wheelers."

Under this agreement, the three entities will collaborate to build an electric mobility ecosystem by constructing battery swapping stations in key areas of Hanoi, developing battery standardization and safety management systems, and jointly creating business models for electric two-wheeler platforms.

As an initial step, a pilot project will launch in the third quarter of this year, deploying approximately 50 battery swapping stations at major hubs in downtown Hanoi along with a fleet of 500 electric motorcycles.

LG Energy Solution will supply its cylindrical 2170 batteries and oversee the establishment of battery safety management frameworks, the operation of swapping systems, and the provision of operational solutions. The battery manufacturer also plans to implement a Battery-as-a-Service (BaaS) lifecycle management system.

Honda will be responsible for supplying battery packs (Mobile Power Packs, or MPPs), swapping machines, and electric motorcycles. Honda is the largest player in Vietnam's two-wheeler market, commanding a market share of over 80%. Through this partnership, the Japanese automaker aims to accelerate its transition toward electric two-wheelers. The City of Hanoi will handle licensing, regulatory approvals, policy support, and local operational cooperation.

The collaboration aligns closely with Hanoi's eco-friendly transportation initiatives. With a population of approximately 8.5 million and more than 6 million registered motorcycles, Hanoi is often dubbed a "haven for motorcycles." Consequently, air pollution caused by particulate matter (PM2.5) has long been raised as a persistent social issue.

To address the air pollution crisis, the City of Hanoi plans to phase in restrictions on internal combustion engine motorcycles in downtown areas based on time slots and zones starting this July, with plans to expand these regulations through 2030.

Industry analysts view this project as a touchstone for the expansion of the Southeast Asian electric two-wheeler market. While Vietnam boasts a massive total two-wheeler market of roughly 80 million units, the share of electric models remains at just 4%, or 3.2 million units. However, with the tightening of eco-friendly policies in major cities combined with the expansion of charging and swapping infrastructure, the market's growth rate is projected to accelerate rapidly.

Truong Viet Dung, Vice Chairman of the Hanoi People's Committee, remarked, "South Korea and Japan are leading nations in the field of battery swapping stations for electric two-wheelers." He added, "Leveraging the technological prowess of LG Energy Solution and Honda, we look forward to establishing a battery swapping infrastructure that Hanoi citizens can utilize with greater convenience."

An official from LG Energy Solution stated, "Vietnam is a pivotal market for the electric two-wheeler transition in Southeast Asia." The official added, "Based on our differentiated battery technology, we will continue to contribute to building eco-friendly transportation infrastructure."