bne IntelliNews – Slovak InoBat plans electric vehicle battery factory in Serbia
Electric vehicle (EV) battery technology company InoBat has signed a declaration of intent with the Serbian government on the construction of a major new EV battery plant.
The new gigafactory will help meet the growing demand for batteries for electric cars in Europe. Serbia is an increasingly important destination for the manufacture of automotive components.
InoBat said in a November 14 press release that the Serbian government would provide “financial and material support.” It did not reveal the amount of support, but according to Reuters it will provide funding of up to 419 million euros, including grants and tax incentives.
Marian Bocek, CEO of InoBat, said the Serbian government had been “outstanding partners”. “The agreement reflects our shared ambition for the future of green mobility and the importance of fostering sustainable growth models,” he added.
The plant project will also be supported by the International Finance Corporation (IFC), part of the World Bank Group, through its early stage project development engagement with InoBat.
Ary Naim, IFC Regional Director for Central and Southeast Europe, said, “Serbia is well positioned to continue attracting manufacturing investment and becoming a centerpiece of the electric mobility revolution. in Europe, creating new jobs and opportunities in tomorrow’s economy for decades. come.
“An InoBat gigafactory in Serbia could serve as an anchor that will catalyze much more investment in regional manufacturing value chains,” he added.
According to Reuters, the plant will have a capacity of up to 32 gigawatt hours (GWh), but when it opens in 2025 it will have an initial capacity of 4 GWh.
InoBat has already created its Serbian subsidiary, InoBat Auto Beograd.
Serbian Prime Minister Ana Brnabic welcomed the agreement. “This is an important step for Serbia in positioning our country as a great contributor to a sustainable and green future and among the main European players in this highly innovative and revolutionary strategic industrial sector”, he said. she stated.
“The InoBat investment is further proof of our efforts to ensure that Serbia develops in line with the latest technological and industrial trends and that our country is a leading investment destination.”
Demand for electric vehicle batteries has “soared” in key auto markets in Europe and the United States, according to a new report from McKinsey. The consultancy predicts that global demand will increase by around 30% to nearly 4,500 GWh per year by 2030.
While Europe has so far lagged East Asia in EV battery production, Central Europe has become an emerging hub for EV battery production, helped by the presence of major car manufacturers in Central Europe and Germany. A growing number of car manufacturers are now producing electric models in Central Europe.
Several South Korean manufacturers of electric car batteries have chosen Hungary for their production sites, while LG Chem has chosen Wroclaw in Poland for a factory of lithium-ion cells and batteries. In addition to East Asian giants, European battery producers have invested in the region, such as German Draxlmaier’s electric car battery plant in Romania and technology group’s battery component plant Belgian Umicore in Poland.