Chinese company Sunwoda, one of the world’s largest battery manufacturers, will build its first European plant in Nyíregyháza, eastern Hungary, with an investment of around HUF 580 billion (EUR 1.5 billion), creating thousands of new jobs, Minister of Foreign Affairs and Trade Péter Szijjártó announced.
The Minister said that the company will set up its first European plant in Hungary in response to growing demand from the continent’s automotive industry. The company has announced an investment of HUF 93 billion in the first phase (EUR 243.8 million), but the value of the project, including the other construction phases, will reach HUF 580 billion (EUR 1.5 billion) in the long term, creating thousands of jobs in Nyíregyháza.
This is the biggest investment announced so far this year. This is the third investment this year worth over one billion euros, and this makes it certain that we can meet our commitment to not only exceed last year’s investment record, but double it.
Péter Szijjártó emphasized that environmental protection is a top priority for Sunwoda, which will use 90 percent of its total water needs from treated wastewater and will use drinking water only for hand washing, drinking and similar purposes, and will also build a wastewater treatment plant.
The company will install a solar farm as well, providing the plant’s operations with essentially renewable energy, helping Hungary to remain one of the few countries that can increase its economic performance while reducing its emissions. What is more, the plant will join the municipal monitoring system to guarantee the prevention of air, soil and water pollution, Péter Szijjártó pointed out.
The Minister stressed that the investment means that
five of the world’s ten largest producers of electric batteries will now be present in our country, with a world market share of 49.4 percent in the sector.
“Here I would ask those who argue against such investments whether they seriously think that these investments should have been moved to other European countries. Do they seriously think that it would be in the interest of us Hungarians that these factories, using modern technology and ensuring long-term economic growth and provide jobs for thousands of people, should really be established in other countries and that other countries should benefit from them?” Péter Szijjártó asked in light of the recent public opposition towards battery plants.
The production value of the Hungarian automotive industry has increased three and a half times in ten years, and last year it exceeded 12,000 billion forints (EUR 32.3 billion), representing an annual growth of 31 percent. Many Asian countries are choosing to invest in Hungary, with China’s Contemporary Amperex Technology Co. Limited (CATL) building its battery plant in Debrecen, eastern Hungary, worth EUR 8.1 billion, creating 9,000 jobs as a result. With an investment of around HUF 400 billion (EUR 1 billion), the world’s ninth largest electric battery manufacturer, China’s Eve Power
, will build its first European plant in Debrecen as well. Volkswagen Group
has also announced that Hungary is among the possible destinations for their battery factory.
He emphasized that this project is also proof of the success of the opening up to the East, as since 2019, the highest number of investments in Hungary has been coming from Asian countries every year. Moreover, last year and, given the numbers, this year, the most investment will certainly be from China.
Péter Szijjártó underlined that
the large-scale construction of electric cars will undoubtedly determine where economic growth will take place, and that this is not only an economic issue but also an environmental one, as the transport sector currently accounts for 14 percent of global emissions.
Construction of Sunwoda will begin next year and production is scheduled to start at the very end of 2025. The plant will supply lithium-ion energy from Nyíregyháza to the automotive industry on the continent. The Sunwoda group was founded in 1997 and is headquartered in Shenzhen. It started producing batteries for electric vehicles in 2008. It has an extensive product portfolio, offering a wide range of energy storage technologies and related hardware for well-known household brands in the industry. Its factories are located in China and India.
Via MTI, Featured photo via Facebook/Sunwoda Energy