Hungary’s €24 million investment aid to Volta Energy Solutions for the extension of a battery copper foil plant in the Hungarian vicinity of Kozep-Dunantul in Central Transdanubia complies with EU State aid rules, the European Commission said on January 7, adding that the aid will contribute to the development of the vicinity, whilst preserving competition.
Volta Energy Solutions, before Doosan Energy Solution, is a subsidiary of Solus progressive Materials, a large Korean company, which produces copper foil, characterize materials, and biomaterials.
According to the Commission, the €24 million Hungarian investment aid will sustain Volta Energy Solutions’ €206 million investment in the extension of its battery copper foil manufacturing plant in Kornye, located in the Hungarian vicinity of Kozep-Dunantul in Central Transdanubi. Copper foil is generally used to manufacture batteries, and the copper foil manufactured in this plant will be specifically used for batteries for electric vehicles.
The project, which started in October 2020 and is planned to be completed in 2022, is expected to create nearly 200 direct jobs. The new unit will more than double the current production capacity of the plant.
The production plant is located in the Kozep-Dunantul vicinity – an area eligible for EU regional aid, the Commission said.
After assessing the aid measure, the Commission found that the investment aid will contribute to job creation in addition as to the economic development and to the competitiveness of a disadvantaged vicinity.
additionally, the Commission found that in the absence of the public funding, the project would have been carried out outside the European Economic Area (EEA).
Finally, the Commission accessed that the aid is limited to the minimum necessary to cause the investment in Hungary, instead of outside the EEA and complies with all aid intensity requirements, also considering the aid which Hungary granted to the company for the same plant in 2018 under the General Block Exemption Regulation.
On this basis, the Commission said the positive effects of the project on regional development clearly outweigh any distortion of competition brought about by the State aid. consequently, it approved the measure under EU State aid rules.
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