• Hungarian forint
  • Budapest
  • Police news
  • HelloMagyar
Hungary is a battery power, but is it worth it?Hungary is a battery power, but is it worth it?Hungary is a battery power, but is it worth it?Hungary is a battery power, but is it worth it?
  • Politics
  • Business
  • Society
  • Sport
  • Culture
  • Special Hungary
  • News To Go
  • World
  • Contact Us
  • About us
  • About us
  • Contact Us
  • Privacy Policy
✕
Important
  • BREAKING: Austria detaches Hungarian trains of Western railway network

  • Official price list: e-vignette prices to skyrocket in Hungary in 2024

Support us
Sipos György Sipos György · 26/10/2022
· Business

Hungary is a battery power, but is it worth it?

As the need for electric vehicles grows, so does the demand for batteries. According to experts, by 2030 every second new car will be electric. Catching on with the new trend, the government plans to secure the country’s car production industry. The idea is great in theory, but there are several obstacles on the horizon. Will it be good for the economy if the aspirations come true?

There are two main problems with battery and electric car production. First, it requires less manpower than regular cars. Second, this market is very heavily ruled by just a few large conglomerates. Usually, large quantities of batteries are produced by a few large companies that also invest in the research and development of these technologies. Therefore, it is questionable whether Hungarian companies can even compete in this market.

The market on the production side is mostly ruled by one country, China. This country has an average share of 60-70 percent in production. The required materials are coming from different countries where these are mined, like Australia, Indonesia or the DRC. In Hungary, most production is primarily dominated by South Korean companies. Even though the Hungarian market is dominated by South Korea, new Chinese actors are on the way.

  • Read also: Good news from KSH: Hungarians get significantly higher salaries

The role of Hungary

According to G7.hu, the total worth of investments was around EUR 5.3 billion which created about 13,800 job opportunities. The three biggest investments in the country, one by Samsung and two by SK, received HUF 138.6 billion (EUR 3.4 million) in state funding. This financed about 12 percent of the total cost of the investment. However, smaller endeavours also receive funding, which on average accounts for 10 percent of the costs. Of course, these investments require additional infrastructural upgrades in the surrounding area.

However, despite the effort, the newly settled companies usually bring their own suppliers. Hence, they are not reliant on Hungarian companies. Most of the hindrances stem from the lack of technological capabilities of the country and the small scale of the domestic market. There is no power in the hand of Hungary from a strategic perspective. As Hungary lacks the materials to have a strong chemical industry, the only way the country can have a larger stake in the more knowledge-intensive processes.

Hungary is only a superpower on the surface. First of all, statistics used present a false image as they overrepresent the role of Hungary. Secondly, the companies are just producing here, but they take no real part in Hungarian exports and the economy overall. The survival of the car production industry of the country is definitely a good point. But the road to success starts from development, not from production. Hungary needs to do its own research and development to be able to compete in this market. Nevertheless, this can mean a fast track for Hungary into a rapidly growing industry. However, for true success, more trust is needed in the innovative capabilities of domestic companies.

cyber-security internet
Read alsoWorld-leading cyber defence company sets up regional headquarters in Budapest

Source: G7.hu

If you would like to support the work of the Daily News Hungary staff and independent journalism,
please make a donation here
Asia Hungary industrial investment success
Share

Hot news

  • Travel time from this Hungarian city to Serbia will be much higher than promised

  • French university with the best management courses worldwide celebrated Budapest campus

  • New fuel price cap on horizon in Hungary? Brutal fuel shortages could be coming

  • Agriculture minister: diversity and forests must be preserved

  • Researchers may detect the earthly remains of 15 Hungarian Medieval kings

  • What happened today in Hungary? – 29 September, 2023

1 Comment

  1. Norbert says:
    14/11/2022 at 18:28

    Our Politicians are masters at this: “Hungary is only a superpower on the surface. … statistics [are] used [to] present a false image”. And, when in doubt, surely a referendum with leading questions will do the trick!

Leave a Reply

Your email address will not be published. Required fields are marked *

SUPPORT US
  • Facebook
  • Twitter
  • Instagram

Must read

Subscribe to our newsletter

Sign up to receive daily updates, news & stories about Hungary!

Select your location below or enter your country so we can deliver our morning newsletters to you in time.

Thank you!

You have successfully joined our subscriber list.

.

Contact us

About us

Copyright rules

Privacy policy

Advertise with us

© 2023 DailyNewsHungary. All rights reserved! | Server and development by Svigelj Levente E.V
Travel time from this Hungarian city to Serbia will be much higher than promised

Travel time from this Hungarian city to Serbia will be much higher than promised

Read More
French university with the best management courses worldwide celebrated Budapest campus

French university with the best management courses worldwide celebrated Budapest campus

Read More
New fuel price cap on horizon in Hungary? Brutal fuel shortages could be coming

New fuel price cap on horizon in Hungary? Brutal fuel shortages could be coming

Read More
Agriculture minister: diversity and forests must be preserved

Agriculture minister: diversity and forests must be preserved

Read More
Researchers may detect the earthly remains of 15 Hungarian Medieval kings

Researchers may detect the earthly remains of 15 Hungarian Medieval kings

Read More
<b> What happened today in Hungary? – 29 September, 2023 </b>

What happened today in Hungary? – 29 September, 2023

Read More
Ryanair cuts flights: cancellation starts from end-October

Ryanair cuts flights: cancellation starts from end-October

Read More
Hungary’s drinking water supply in danger?

Hungary’s drinking water supply in danger?

Read More
Hungarian restaurants among the world’s best of the best

Hungarian restaurants among the world’s best of the best

Read More
PM Orbán in talks with the United Arab Emirates in Belgrade: Budapest Airport on the menu? – UPDATED

PM Orbán in talks with the United Arab Emirates in Belgrade: Budapest Airport on the menu? – UPDATED

Read More
  • 0
  • 1
  • 2
  • 3
  • 4
Have you read it?