South Korean battery material manufacturer, EcoPro BM, has started construction on its new factory in Debrecen, Hungary, aimed at producing cathode materials for electric vehicle (EV) batteries. The plant will produce 108,000 tonnes of cathode materials per year and employ 631 people.
According to the Hungarian Investment Promotion Agency (HIPA), the project is on track and progressing according to schedule. Phase one of construction is set for completion in the second half of 2024, with phase two following a year later.
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EcoPro BM will supply the cathode materials to Samsung SDI’s battery factory in Göd, Hungary, which will be used to produce batteries for 1.35 million EVs. Samsung SDI and EcoPro BM set up a joint venture for cathode materials in 2020.
Hungary has been a key destination for foreign direct investment (FDI) from South Korea. Between 2019 and 2022, South Korea was responsible for the most FDI in Hungary, with a total of 49 related deals closed over the nine-year period, mostly in the e-mobility sector.
The EcoPro project is just one of several in Hungary’s EV sector, including BMW’s new electric car plant in Debrecen, set to begin production in 2025, and CATL’s planned battery cell factory with an annual capacity of 100 GWh to supply Mercedes-Benz.
With the global push towards EV adoption, the demand for battery production and supply chain components is set to grow rapidly, making investments like these crucial for meeting future demands. EcoPro’s new factory is an essential step towards creating a more sustainable future for transportation, and Hungary’s efforts in the EV sector will undoubtedly help to drive this shift.
