Lego opens new Vietnam factory it plans to run entirely on renewable energy

• Lego officially opened a $1 billion factory in Vietnam this week, designed to operate entirely on renewable energy. This projects also features other environmental initiatives like tree planting and the elimination of single-use plastic packaging, all part of the company’s broader goal to reach net-zero emissions by 2050.
• The facility will be powered by 12,400 solar panels and renewable energy agreements, with battery storage enabling independent clean energy operation by 2026—potentially making it Vietnam’s first fully renewable-powered plant.
• Despite these green efforts, Lego’s bricks are still made from oil-based plastics, which are not easily recyclable or biodegradable, a problem the company has pledged to develop and adopt sustainable material alternatives by 2030 to solve.

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Lego officially opened a new factory in Vietnam during the week of April 7, designed to operate entirely on sustainable energy. The project is part of the company’s broader commitment to achieving net-zero emissions by 2050.

“This state-of-the-art site reflects our commitment to sustainable growth and innovation, bringing more LEGO play experiences to children and our fans in the Asia-Pacific region through increased manufacturing capacity,” Niels Christiansen, CEO of the Lego Group, said.

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How does Lego plan to run this factory on 100% renewables?

This $1 billion facility will be powered by an integrated system of 12,400 solar panels, supplemented by agreements with other renewable energy providers. An adjacent energy center will store electricity in large-scale battery systems, enabling the facility to operate independently on clean energy by early 2026. If achieved, it is projected to become the first factory in Vietnam to run entirely on renewable power.

“I am extremely proud of our environmental sustainability progress in Vietnam, strengthening our positive impact locally while supporting our global ambitions,” Carsten Rasmussen, COO of the Lego Group said. “The use of battery storage solutions and power purchase agreements to increase renewable energy is not just a first for the LEGO Group but among the first for any company in Vietnam.”

How is policy and technology shaping Lego’s new facility?

The new plant benefits from Vietnam’s 2024 direct power purchase agreement. It allows foreign companies to purchase renewable energy directly from producers.

The highly automated facility will produce Lego bricks for markets across Southeast Asia and is expected to eventually employ thousands of skilled workers. Some employees have already begun work after receiving training at Lego’s facility in eastern China.

Will this factory offer any other environmental benefits?

In addition to its energy goals, Lego pledged to plant 50,000 trees in Vietnam, twice the number which were removed during the factory’s construction on its 109-acre site. The company also said it is phasing out single-use plastic packaging at this facility.

“We are excited to now have started the planting of 50,000 trees, as it marks the first of many activities on our sustainability journey in Vietnam,” Preben Elnef, vice president and program lead for the Lego Group in Vietnam, said.

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What happens next?

Despite these green initiatives, the company continues to face criticism for using oil-based plastics in its iconic bricks, which are not easily recyclable or biodegradable. To address this, Lego said it invested $150 million to establish a Sustainable Materials Center at the company’s Denmark headquarters, while pledging to identify and implement more environmentally friendly alternatives to use in its products by 2030.

“In our search for more sustainable alternatives, we collaborate with companies and institutions that develop materials with a reduced environmental impact,” Lego said. “The alternatives should offer the same safety, quality, durability and play experiences as our current materials.”