The $2.3 billion project creating 2,500 jobs will be the largest greenfield operation in Hungary, he added.

The new factory will have the capacity to produce 30GWh of batteries annually, enough to power 600,000 electric cars.

Szijjártó said the state will provide significant support for the construction of the new battery plant, but the size of the state aid has not been finalised yet.

The government aid will certainly be the largest one-off investment subsidy in the history of Hungarian investment promotion, he added.

SK Innovation already has two factories in Komárom.

It started building a 7.5GWh capacity battery factory in the town in 2017, and announced the creation of its second battery factory at an adjacent site in 2019.

The location for the third plant, instead of an expansion in Komárom, was a surprise, Portfolio observes.

Demand for electric cars will increase significantly in Europe, which justifies the present expansion, said SK Innovation chairman and CEO Jun Kim.

He added that Iváncsa was selected, as a new location, because of the locally available well-trained labour and its excellent logistics.

Portfolio adds that, thanks to the present investment, Hungary will become a leader in European battery production, because Asian manufacturers Samsung SDI, GS Yuasa and Inzi Controls have built battery factories in Hungary in recent years.


MTI Photo: Zoltán Máthé