The European Commission validated, on Tuesday 28 February, the Hungarian aid of €89.6 million for Samsung SDI.
The investment aid will support the expansion of Samsung SDI’s electric vehicle (‘EV’) battery cell production plant in Göd and thus contribute to the development of the region and the creation of jobs, while preserving competition.
Samsung SDI is one of the main players in the fast-growing market of lithium-ion batteries.
In 2018, Hungary notified its intention to grant €108 million of public aid for this project. In October 2019, the Commission opened an in-depth investigation and in June 2021, it extended the scope of its investigation. The aid was granted in December 2021.
The Commission’s investigation showed that:
- without the public funding, the project would not have been carried out in Hungary or another EU country (it would have taken place in a third country, as it would have been more profitable for Samsung SDI to produce the battery cells there and export the finished product to Europe);
- the aid is limited to the minimum necessary to incentivise Samsung SDI to carry out the investment in Hungary if it does not exceed €89.6 million. Following the investigation, the Commission concluded that the initially notified aid of €108 million exceeded the minimum necessary to incentivise investment. (Original version in French by Lionel Changeur)