Samsung SDI's battery factory in God, Hungary, March 3 / AFP-Yonhap
Korean battery firms running manufacturing facilities in Hungary are expected to ease concerns about their businesses despite the European country’s first political turnover in 16 years, as incoming Prime Minister Peter Magyar and environmentalists have signaled their intent to improve relations with the industry they once criticized.
Cautious optimism is also growing that the winning Tisza party’s pro-European Union stance will help revitalize Hungary’s economy and increase local demand for batteries.
On April 13, a day after his party won the parliamentary election, Magyar told reporters that his government “warmly welcomes investors,” referring to Chinese battery investment projects in Hungary.
“We want to position Hungarian companies as partners of BYD, CATL and other major investors, and I believe we will be able to cooperate,” he said.
During his election campaign, Magyar expressed a hostile stance toward Asian battery firms, repeatedly turning the industry into a political issue by raising environmental and labor concerns. He also said his administration would review Chinese investment projects, triggering concerns among Korean battery firms operating in the country.
However, the new prime minister said that the review is not intended to halt investments but to ensure that they contribute to the Hungarian economy and comply with EU and Hungarian standards on environmental protection, health and labor.
While Magyar continues to stress environmental concerns, he has also emphasized the need for local Hungarian companies to participate as equal partners with battery firms in creating value, which is seen as an olive branch to the industry.
Peter Magyar, leader of Hungary's Tisza party, answers journalists' questions during a press conference in Budapest, Hungary, Monday. AFP-Yonhap
On April 16, Greenpeace’s Hungarian branch announced that it had found no significant pollution in the vicinity of battery factories run by three Korean companies — Samsung SDI, SK On and Dongwha Electrolyte — after analyzing 10 samples taken from shallow wells near the facilities last month.
Source: Korea Times News
