SK Innovation’s battery factory No. 2 under construction in the northwestern Hungarian city of Komarom. (SK Innovation)
SK Innovation will receive subsidies worth 90 million euros ($106.2 million) from the European Union for its second battery factory in Hungary, the firm said Sunday.
According to the South Korean battery-to-petrochemical giant, the state aid will take up roughly 8 percent of the total investment worth 945 billion won ($827.1 million) required for the 10-gigwatt-hour battery factory under construction in the northwestern Hungarian city of Komarom. The facility is set for completion this year and commercial operation next year.
“For an EU member to grant subsidies to a company, an approval from the European Commission is required. The European Commission gave a green light to the subsidies for SK Innovation after a 10-month review since September, recognizing positive effects on the economy and employment once the facility is completed,” an SK Innovation official said.
SK Innovation’s order backlog for electric vehicle batteries stands at 1 terawatt-hour, enough to power 14 million EVs. The firm’s clients include Volkswagen, Daimler, Beijing Automotive Group, Hyundai Motor and Kia, among others.
By Kim Byung-wook (email@example.com