LG Energy Solution (KRX:373220), Japanese automaker Honda Motor (TYO:7267), and the City of Hanoi, Vietnam, signed a memorandum of understanding to establish public battery swapping stations for electric two-wheelers, according to a Wednesday release.

Under the agreement, the three parties will establish electric two-wheeler battery-swapping stations in ​​central Hanoi using LG Energy Solution's Cylindrical 2170 batteries and develop battery standardisation and safety management systems. Business models for electric two-wheeler platforms will also be established, according to the release.

Honda will be responsible for battery packs, switchers, and electric motorcycles, the release said.

Shares of LG Energy Solution fell nearly 4% at market close.