Korean firm SK Innovation has started construction of an electric car battery plant in Hungary.
Sources say the company's first European plant will create new jobs for Hungarians and provide yet another boost to the economy. It's also to become a platform for SK to expand into the European market.
Peter Szijjártó, minister of Foreign Affairs and Trade, joined SK Group Vice Chairman Chey Jae-won at the launch on Thursday.
"We have made a lot of efforts since 10 years ago when we first planned the electric vehicle battery business," the vice chairman said. "We are now seeing the fruits of those seeds, including our plant in Europe.
"We will wait for the day in the near future when we will be supplying SK batteries to all electric vehicles around the world," he added.
SK Innovation chose Komárom in northwestern Hungary for their new plant after scoping out many other locations in eastern Europe.
The company has secured 430,000 square meters of land to expand their plant and will invest 784 million USD in the plant until 2022.
SK Innovation plans to produce third-generation electric car cells at the plant that will provide 500 kilometers of travel on a single charge.