The European Commission has given the green light for the Hungarian Government to provide €209 million (£174m) of state aid for the construction of SK on Hungary’s electric vehicle (EV) battery plant.
It will support the new manufacturing facility for lithium-ion battery cells and battery modules for EVs in Iváncsa, in the Közép-Dunántúl region.
The plant will have an annual capacity of 30 GWh and is expected to create 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, semi-conductors, information and communications technology, logistics and services.
The Commission found the investment aid will contribute to job creation as well as the economic development.
It added: “The Commission concluded that the positive effects of the project on regional development clearly outweigh any possible distortion of competition brought about by the state aid. The Commission therefore approved the measure under EU state aid rules.”