The European Commission approved 209 million euros of Hungarian aid for the construction of SK On Hungary’s electric vehicle battery plant in Iváncsa, in the Közép-Dunántúl region.
The plant with an annual capacity of 30 gigawatt-hours (GWh) is expected to manufacture lithium-ion battery cells and battery modules for electric vehicles while creating at least 1,900 direct jobs.
SK On Hungary (formerly SK Battery Hungary) is part of the SK Group, a global South Korean company active in various industries, including energy, chemicals, semiconductors, information and communications technology, logistics and services.
The Commission approved the Hungarian state aid based on the finding that “in the absence of the public funding, the project would have been carried out in a more developed European region than Central Transdanubia.”
It also concluded that the aid is limited to the necessary minimum to trigger the investment in Hungary and that it complies with all aid intensity requirements.
SK On Hungary’s total investment into the project will be 1,623 million euros.