Slovakia’s projected battery production capacity will reach 10 GWh by 2030, faring lower than those projected for Visegrad counterparts and beating only Croatia’s two GWh in the Central European region, an analysis of the vehicle production-dependent country by Erste Group reads.
By comparison, other Visegrad countries are expected to have far greater capacity levels, with Hungary leading with an expected capacity of 250 GWh, followed by Poland with nearly half, 120 GWh.
Since the average electric car requires 50 kWh to travel 100 kilometres, Slovakia’s 10 GWh project could power approximately 200,000 vehicles, while Hungary’s 250 GWh could power up to five million.
“It is not important for companies whether the battery factory is on the Slovak or Hungarian side of the border, so the activities of the government and the subsidies provided are beginning to play an increasingly important role,” says economist Matej Horňák, one of the analysis’ authors.
From 2035 onwards, the European Union aims to effectively ban the sale of new vehicles with internal combustion engines. The transition to electric alternatives is embraced by EU countries and states like the US, which recently implemented its Inflation Reduction Act (IRA) to offer tax incentives for the production and use of materials within their territories, creating significant competition.
The analysis results underscore Slovakia’s struggle to adapt to these changes. The analysts emphasise that both Slovakia and the EU must explore avenues to sustain their appeal and competitiveness on the international stage, given the increasing role of state subsidies. The only substantial investment in Slovakia is the InoBat project in Voderady, projected to produce 10 GWh of batteries.
For now, Slovakia makes around one in 10 of all cars produced in the EU. In order to better prepare for a future based on electromobility, the analysts recommend actions like advancing the electric grid and expanding the number of available charging stations.