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New Gigafactory to play a role in the Czech Republic’s coal phase-out

The Czech Republic’s Ministry of Industry and Trade and utility group ČEZ have signed a Memorandum on the preparation of a project for a factory that makes battery cells for electric cars, known as Gigafactory. An investment in the project, which has an annual production capacity of 40 gigawatts-hour (GWh), will amount to at least 52 billion crowns (approximately 2 billion euros) and 2,300 jobs should be created.

“The automotive industry is a cornerstone of the Czech economy, accounting for nearly 10 per cent of our GDP,” said Deputy Prime Minister and Ministry of Industry and Trade Karel Havlíček. “Now we must, exactly in line with our Country for the Future strategy, take steps to take it to the next level. Electromobility is a reality and it is very important that one or several battery cell factories be built in the Czech Republic. Every factory can provide work for more than two thousand people directly at the plant and thousands of more jobs will be created in downstream sectors. Our government is prepared to secure conditions to support the project, including by building key infrastructure.”

The factory for battery cells for electric cars is a strategic project that will accelerate the transformation of both the energy and automotive industries in the Czech Republic. The project of the factory and the associated lithium mine also offer an opportunity to improve living conditions in regions facing structural transformation due to coal industry phase-out.

“ČEZ is the largest operator of public charging stations in the Czech Republic and we are prepared to expand our business to other segments of electromobility,” added the Chairman of the Management Board and CEO of Daniel Beneš. “We are preparing a lithium mining project at Cínovec, which could be used in a battery cell factory in the country. As a part of the contemplated consortium of investors, where we could act as the developer, which will provide, among other things, the necessary land and take care of the supply of power and energy services. A suitable site is, for example, the grounds of the decommissioned Prunéřov 1 power plant.”

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