Pan Asia Metals inks MoU to evaluate standalone lithium conversion facility in Vietnam

ASX-listed battery metals specialist Pan Asia Metals (ASX:PAM) has inked a non-binding memorandum of understanding (MoU) with VinES Energy Solutions to evaluate a standalone lithium conversion facility in Vietnam.

Under the MoU, Pan Asia and VinES will work together to evaluate the feasibility of a standalone lithium conversion facility located close to VinES’ Vietnamese battery plant. The evaluation will consider an initial capacity of 20,000 to 25,000 tonnes per annum of lithium carbonate or lithium hydroxide.

VinES is a member of Vietnam’s largest conglomerate, VinGroup, and specialises in researching, developing, and manufacturing advanced lithium-ion batteries for mobility and energy storage applications.

Pan Asia reports it has started feasibility work for the conversion facility, with technical work being coordinated by Perth-based engineering consultancy Lithium Consultants Australasia.

Additionally, both companies will establish a joint project team that will cover project ownership, feedstock supply, and offtake provisions. A key responsibility for Pan Asia is to secure additional lithium concessions and lithium oxide concentrate supply agreements with the goal of supplying feedstock to the project.

The company says the joint project team will also start discussions with third-party feed providers for lithium feedstock. The facility’s proposed location in Vietnam is expected to optimise logistics and enhance the environmental, social, and governance (ESG) credentials of the end product.

Following the completion of the Feasibility Study, Pan Asia and VinES will potentially negotiate the terms of a legally binding definitive agreement defining the collaboration for the project.

Shares in Pan Asia Metals have spiked 20.83% to $0.29 at midday AEST. The company has a $49.6 million market cap. 

Pan Asia Metals Managing Director Paul Lock says the VinES MoU is a ‘material endorsement’ of PAM’s mid-stream lithium chemical strategy in Southeast Asia. 

“We are thrilled to be working with VinES, an ESG-focused EV battery manufacturer, in the evaluation of a standalone lithium conversion facility in Vietnam.

This is a significant step towards achieving our strategy, focused on developing an integrated supply chain to cost-effectively deliver relevant and in-demand productions to the Li-ion battery market in South-East Asia.

As a company with a strong focus on SouthEast Asia, we believe that VinGroup’s dedication to green mobility and technology makes VinES an ideal partner for Pan Asia Metals”

As a company with a strong focus on Southeast Asia, we believe that VinGroup’s dedication to green mobility and technology makes VinES an ideal partner for Pan Asia Metals. We are excited about the potential to contribute to the development of the lithium supply chain in Vietnam through this collaboration, and in achieving our shared goals with VinES.”

Also commenting, VinES Chief Executive Officer (CEO) Pham Thuy Linh says lithium remains one of the most important raw materials in the battery material supply chain and a focus for VinES.

“A potential lithium conversion facility near our existing operations in Vietnam could significantly enhance VinES’ operational synergy and flexibility, strengthen our integrated supply chain, and ensure VinES’ comprehensive sustainable development. 

I believe the MoU with Pan Asia Metals shall continue to strengthen our position in accelerating the growth of business and seizing opportunities in the EV supply chain.”

Pan Asia Metals is an ASX-listed company that wields a portfolio of projects in Southeast Asia, including the Reung Kiet and Kata Thong Lithium projects in Thailand. Additionally, Pan Asia holds the Khao Soon Tungsten Project in Thailand.

Write to Harry Mulholland at

Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.