Poland competes with Hungary for €2 billion electric vehicle battery factory

Samsung SDI is considering Poland for a major battery plant, but Hungary is determined to attract the investment as it seeks to become a global leader in electric vehicle battery production

The electric car battery of a BYD Seagull electric vehicle as seen at the Caresoft Global facility Wednesday, April 3, 2024, in Livonia, Mich. (AP Photo/Mike Householder)
By Grzegorz Adamczyk
2 Min Read

Samsung SDI is exploring the construction of a new electric vehicle battery factory in Poland, with the potential investment exceeding €2 billion. However, Hungary is also aggressively vying for the project, aiming to position itself as the world’s largest supplier of EV batteries.

According to the business daily Puls Biznesu, the investor is interested in plots of approximately 200 hectares, with a prime location identified near Gdańsk. Negotiations for the purchase and development of the site have reportedly been ongoing since late last year.

Poland faces stiff competition from Hungary, where Prime Minister Viktor Orbán has openly declared his ambition to dominate the global EV battery market. In a recent speech, Orbán asserted that “nothing will stand in the way” of achieving this goal.

Hungary holds a key advantage: a massive battery production hub is currently under construction near Debrecen, the country’s second-largest city. This $8 billion project, led by Chinese company Contemporary Amperex Technology and German automaker Mercedes, is set to become the largest EV battery manufacturing center in Europe.

Additionally, Hungary already hosts other Samsung SDI facilities, including TV production plants, giving it a further edge in attracting this new investment. A final decision on the plant’s location is expected in the first quarter of 2025.

Poland, however, remains a strong contender. It already hosts the largest EV battery factory in Europe – LG Energy Solution Wrocław. Maciej Mazur, Managing Director of the Polish Association of Alternative Fuels, notes that by 2035, electromobility could account for up to 5 percent of Poland’s GDP. Globally, the battery sector is projected to be worth over $400 billion by 2030.

Currently, Poland is the world’s second-largest battery producer after China and the leading producer in Europe, responsible for around 6 percent of global output. In the first quarter of this year alone, Poland’s battery exports were valued at €2.8 billion, accounting for over 3 percent of the country’s total goods exports.

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