VinFast caught up with alleged violation of patents

Vietnamese automaker VinFast is facing accusations of patent infringement from steel giant ArcelorMittal. The US International Trade Commission (ITC) launched an investigation in April 2024 following a complaint filed by ArcelorMittal, alleging VinFast's vehicles utilise high-strength aluminium and aluminium alloy-coated steel that infringe on their patents.

This isn't the only legal action ArcelorMittal has taken. It hasalso filed a lawsuit against VinFast in the US District Court of California, specifically targeting the VinFast VF 8 electric SUV. VinFast began deliveries of the VF 8 in California in 2023. Apart from the lawsuit, the VF 8 SUV also received backlash from the customers owing to multiple glitches and issues with the SUV.

VinFast defends the allegations by confirming that it has sourced aluminium-coated steel components from a reputable supplier who has assured them they are not violating any intellectual property rights. The Vietnamese-carmaker further stated that this supplier has committed to indemnifying them for any damages incurred due to the patent infringement allegations.

The potential impact of this case extends beyond the immediate dispute. VinFast is planning to open its first North American manufacturing plant in North Carolina by 2025, with the VF 8 and VF 9 models slated for production in the new facility. A drawn-out legal battle could significantly disrupt these plans by interrupting the production of the entire range of VinFast models.

According to ArcelorMittal, their concerns include not just the VF 8 but the rest of VinFast lineup as well. They believe other VinFast models, including the VF 3, VF 6, and VF 7, may also infringe on their patents. To strengthen their case, ArcelorMittal reportedly purchased a VinFast VF 8 and subjected it to testing, in order to come up with detailed research on the infringement case.

VinFast has not sought a licence from ArcelorMittal to use the disputed technology. ArcelorMittal first contacted VinFast regarding the alleged infringement in November 2022, but no resolution was reached.

The ITC investigation and the lawsuit in California are ongoing. The outcome will determine whether VinFast has indeed violated ArcelorMittal's patents and, if so, what consequences they will face. This case serves as a reminder of the complex legal landscape surrounding intellectual property in the automotive industry. As car companies increasingly adopt new materials and technologies, such disputes are likely to become more common.