Economy

South Korean Energy Company to Build Battery Plant in Hungary

South Korean SK Innovation will build a plant, making lithium batteries for electric vehicles (EV) in Komárom, North-West Hungary, according to an announcement posted at the local town hall.

According to the environmental documentation of the project, construction of the battery plant is expected to start in February 2018. Test operations are due to begin in summer 2019, with commercial production to follow from January 2020.

South Korean online business news service The Investor earlier reported that SK Innovation plans a $779 million USD (EUR 656 million) investment in Komárom to better meet demand from European car manufacturers.

The report said the new plant will be located on a more than 400,000 square-meter site in the Komárom industrial park. The plant is expected to operate 24 hours a day all year round, and will have an annual production capacity of 250,000 EV batteries. SK Innovation already has a battery plant using the same technology in Seosan, South Korea. Commenting on the report, the company then said that no final decision had been taken yet on the location for the European plant.

With SK Innovation’s Hungarian investment, Eastern Europe will now host the production facilities of the three biggest South Korean battery makers, including Samsung SDI and LG Chem. According to The Investor, Hungary has reportedly offered the most generous incentives, including a reduced corporate tax of about 9 percent.

Samsung SDI opened its 100 billion forint (EUR 321.4 milion) battery plant in Hungary earlier this year in Göd, north of Budapest, while LG Chem plans to open a 400 million forint (EUR 1,2 million) EV battery plant in Poland in 2018.

via Hungary Matters, reuters.com, theinvestor.co.kr