China's BYD, one of the world's largest electrical vehicle (EV) manufacturers, will be opening its first European EV production factory in Hungary, according to Hungary's foreign minister, Peter Szijjart?. This move is part of Hungary's efforts to establish itself as a global hub for EV manufacturing. The new plant will be constructed near the city of Szeged in southern Hungary and is expected to create thousands of job opportunities for the region.

Foreign Minister Szijjart? stated in a Facebook post that the project will be a significant investment in Hungary's economic history. He also mentioned that the government will provide financial incentives to BYD for building the plant, with the details to be disclosed at a later date. He believes that the construction of the plant will not only bolster Hungary's economy but also solidify the country's position in the global transition to electric vehicles.

Hungary has been actively pursuing the goal of becoming a global leader in lithium-ion battery manufacturing, as governments worldwide strive to reduce greenhouse gas emissions by promoting electric cars. Companies like South Korea's Samsung and China's CATL have already established battery factories in Hungary. However, some local residents and environmental groups have expressed concerns about the potential environmental impact of these factories.

CATL's 100 GWh battery plant in Debrecen, which is set to generate around 9,000 employment opportunities, currently stands as Hungary's largest EV battery factory. This facility aligns with the government's strategy to cater to foreign car manufacturers present in the country, such as Audi, BMW, and Mercedes-Benz, as they transition to electric vehicles.

While BYD already operates an electric bus manufacturing plant in the city of Komarom in northwestern Hungary, the planned factory in Szeged will mark the first major consumer EV production facility in Europe for a Chinese automaker. Laszlo Botka, the mayor of Szeged, praised the city's location and logistical development as key factors in securing the factory. He also mentioned that preparations for the 300-hectare (740-acre) site have already begun.

The city of Szeged is strategically located near Hungary's border with Serbia and benefits from a rail corridor jointly developed by Hungary's government and Beijing as part of China's "Belt and Road" global trade initiative. The collaboration between BYD and Hungary's government comes after 224 rounds of negotiations, according to Foreign Minister Szijjart?. He sees this investment as a testament to Hungary's leadership in the technological revolution.