Solus Advanced Materials to Receive 32 Billion KRW Incentive from Hungarian Government

Hungarian Government Approves Second Incentive Support Following May 2020
Funds Allocated for Expansion of Hungary Plant 2 to Accelerate Battery Foil Business Growth

Exterior view of Solus Advanced Materials' battery copper foil factory in Hungary (Photo by Solus Advanced Materials)

[Asia Economy Reporter Lee Hyeyoung] Solus Advanced Materials announced on the 14th that it will receive incentives worth 24 million euros (approximately 32 billion KRW) from the Hungarian government for the expansion of its battery foil factory.

The Hungarian government's payment plan was finalized after obtaining final approval from the European Union (EU) Commission. Accordingly, Solus Advanced Materials will be able to receive the incentives in cash by 2023, and the funds will be invested in the expansion of the second factory in Hungary.

This is the second time the Hungarian government has provided exceptional incentives to Solus Advanced Materials. Previously, in May 2020, it provided cash incentives worth 19 billion KRW and corporate tax exemptions worth 15 billion KRW to establish mass production at the first factory in Hungary.

Following the recent successful funding of 28 million USD (approximately 33 billion KRW) from the European Bank for Reconstruction and Development (EBRD), Solus Advanced Materials has secured additional capital with support from the Hungarian government and plans to actively expand its battery foil business. After investing in the expansion of the second factory in Hungary with an annual capacity of 23,000 tons, the company aims to establish an annual production capacity of 100,000 tons in Europe by 2026 to aggressively target the European electric vehicle market.

Kwack Geunman, Chief Financial Officer (CFO) of Solus Advanced Materials, stated, “The Hungarian government's decision to provide incentives highly values the Solus Advanced Materials Hungary factory, the only battery foil production base in Europe,” adding, “Through full-scale expansion investment, we will achieve sales growth and secure leadership in the electric vehicle ecosystem in Europe.”

Meanwhile, the Solus Advanced Materials Hungary factory is a member of the European Battery Alliance (EBA), enabling cooperation with over 700 battery-related companies, institutions, and research centers across Europe. Launched by the EU Commission in 2017, the EBA is currently constructing 36 battery gigafactories across Europe to build the battery value chain. Member companies include Tesla from the United States, Volkswagen from Germany, and Northvolt from Sweden.

This content was produced with the assistance of AI translation services.