Hungary has emerged as a major hub for manufacturing, especially in electric vehicle (EV) batteries, attracting significant investment from South Korean companies in recent years. Below is an overview of major projects by Korean manufacturers.
Investments in the EV Battery Industry
Hungary is one of Europe’s central hubs for EV battery production, with major Korean battery makers undertaking large-scale investments. Key projects include:
- SK On (SK Innovation) – EV Batteries: SK On, part of Korea’s SK Group, has built its third large-scale battery plant in Iváncsa, Fejér County. With an investment of around €2 billion, it is the largest greenfield investment in Hungary’s history. Covering 70 hectares, the new facility has an annual capacity of 30 GWh and will create about 2,500 jobs. Construction began in late 2021, and mass production started in Q2 2024. Together with two existing plants in Komárom (totaling ~17 GWh), SK On’s European production capacity has reached 47.5 GWh.
- Samsung SDI – EV Batteries: Samsung SDI announced in 2025 a €1 billion expansion and modernization of its plant in Göd, north of Budapest. The two existing factories (converted from CRT production) have a combined capacity of about 40 GWh, producing prismatic cells for BMW and Volkswagen. The new investment allocates 323.6 billion KRW (~€240 million) to switch the first plant from wound cells to high-energy-density stacked cells and to expand the second plant’s capacity. From 2026, the Hungarian plant will supply Hyundai and Kia in Europe with sixth-generation (P6) stacked prismatic cells, featuring 91% nickel NCA cathodes and silicon-based anodes, under a 2026–2032 contract for about 500,000 vehicles.
- EcoPro BM – Battery Cathode Materials: EcoPro BM, Korea’s largest cathode maker, is building its first European cathode plant in Debrecen, eastern Hungary, with an investment of about HUF 264 billion (~€800 million). It will produce 108,000 tons of high-nickel cathode material annually (enough for ~1.35 million EVs). Construction began in late 2022, but the start of operations has been postponed from Q4 2025 to Q1 2026 to align with customer certification schedules. This is EcoPro BM’s first overseas plant, supported by Hungarian government subsidies.
- Bumchun – Battery Components (Metal Terminals): Bumchun, a Korean metal processing and battery component maker, is investing HUF 210 billion (~€55 million) to expand its plant in Salgótarján, Nógrád County. The project will triple terminal production capacity and create 400 new jobs. Announced in July 2024, the plan includes HUF 3.75 billion in government support. The plant, Bumchun’s first outside Korea, has been supplying European battery makers since 2019, and the expansion will enable increased output from 2025.
Other projects include Lotte Aluminium’s battery aluminum foil plant in Tatabánya (€133 million, mass production since 2021) and electrolyte maker Soulbrain’s entry into Hungary.
Investments in Semiconductors
While not as large-scale as in batteries, notable projects exist in semiconductor materials. Simmtech, a Korean PCB and semiconductor substrate maker, built its first European semiconductor package substrate plant in Hungary, starting commercial production in 2023. The $300 million facility, near Budapest (exact location undisclosed), manufactures high-density ABF (Ajinomoto Build-up Film) substrates for Europe’s automotive and telecom semiconductor markets. No Korean-led semiconductor fabrication plant is planned yet, and Hungary is exploring cooperation with EU semiconductor initiatives.
Investments in Steel and Metal Materials
There are no Korean-built integrated steelworks in Hungary, but large moves are underway in materials for the EV sector. Solus Advanced Materials (formerly Nisshin Solus) is expanding copper foil production, operating two plants in Hungary. In October 2024, its second plant began mass production, adding 23,000 tons/year capacity to the existing 15,000 tons/year, totaling 38,000 tons in Europe. Solus’ Hungarian operations are currently the only EV battery copper foil production base in Europe. A third plant is planned, aiming for 100,000 tons/year total capacity, reinforcing Hungary’s role in Europe’s EV materials supply chain.
Investments in Electronics
Korean companies operate home appliance and automotive electronics plants in Hungary, with recent large-scale projects mainly in EV components.
- LG Magna e-Powertrain – Electric Powertrains (Motors, Inverters): LG Electronics and Canada’s Magna are building their first European e-powertrain plant in Miskolc, northeastern Hungary. The 26,000 m² facility, with an estimated investment in the hundreds of millions of euros, is set to be completed in 2025, starting with EV drive motor production. About 200 jobs will be created initially, with future expansion to inverters and onboard chargers. Mass production is scheduled for early 2026.
- Samsung Electronics Hungary – Consumer Electronics & AV: Operating in Hungary since the 1990s, Samsung’s TV and monitor assembly plant in Jászfényszaru marked its 30th anniversary in 2023. It remains a key European production base, though some TV production has shifted to other countries. No new large-scale expansion is planned as of 2025, but efficiency upgrades are ongoing. In addition, Samsung opened a €56 million R&D center in Göd in 2023, focusing on battery manufacturing process improvements.
Trends in Home Appliances
Korean home appliance manufacturing in Hungary is limited. LG Electronics mainly produces in Poland, while smaller Korean suppliers provide appliance parts in Hungary. Notably, CJ CheilJedang, Korea’s largest food company, began building a processed food plant in Dunaújváros in 2025. While no major new appliance plants have been announced, government incentives for advanced manufacturing could attract future investment.
Across EV batteries, semiconductors, metals, electronics, and home appliances, South Korean manufacturers’ projects span Hungary, generating multi-billion-forint investments and thousands of jobs. The concentration of EV battery-related operations stands out, positioning Hungary as a meeting point for East Asian suppliers and Western automakers. From a professional standpoint, these moves align with localized, optimized supply chains and are expected to expand further, driven by European demand and policy support.
Reference
https://skinnonews.com/global/archives/5994
Hungarian Investment Promotion Agency SK Innovation: the largest greenfield FDI project ever to st…
https://www.electrive.com/2025/05/27/samsung-sdi-paves-way-for-prismatic-batteries-at-hungary-plant/
https://thelec.net/news/articleView.html?idxno=5252
https://dailynewshungary.com/south-korean-bumchun-investment-hungary/
https://ceenergynews.com/renewables/samsung-sdi-rd-base-hungary
https://www.kedglobal.com/korean-food/newsView/ked202411210006
