Hungary Threatens to Shut Down EV Battery Factories

Hungarian Environment Minister Laszlo Gajdos has threatened to shut down electric vehicle battery factories that fail to comply with environmental regulations, marking a major policy shift since right-wing leader Viktor Orban lost power in April.

Since 2021, Orban had banked on this sector, attracting roughly €26bn ($29.69bn) from Chinese and South Korean investors. However, concerns about the environment and public health became a key election issue, and Orban was defeated by his center-right rival, Peter Magyar.

Gajdos said industrial development must be balanced with nature conservation and pledged the strictest pollution fines in Europe. On Wednesday, even Debrecen Mayor Laszlo Papp (Fidesz) called on the Chinese parts manufacturer Semcorp to leave the city.

The regional office suspended the company's license in late June after authorities in the area surrounding the plant discovered widespread aluminum contamination in the water supply. Zsolt Tarkanyi, a local council member for the Tisza Party, wrote on Facebook that the mayor should resign following the revelations, a call also supported by Prime Minister Magyar.

Support for the ruling Tisza party has surged since the election. According to the Median agency, the party now enjoys the backing of up to 73% of decided voters, while Fidesz has fallen to 21%.

(Reuters, Max)