German car giants and Asian battery kings: a match made in Hungary

German automakers and Asian battery suppliers are getting together in Hungary in a multi-billion-dollar marriage of convenience to drive their electric ambitions. The companies are flocking to central Europe, where Viktor Orban's government is defying Western wariness of China and offering generous benefits to host foreign operations and stake Hungary's claim as a global centre for electric vehicles (EVs). Investment in the Hungarian auto industry is being dominated by three countries - Germany, a champion carmaker, plus China and South Korea, EV battery leaders way ahead of European rivals. Companies from those three countries have accounted for 29 out of the 31 cash subsidies handed out by Hungary for major investments in its auto and battery sector over the past decade, according to a Reuters analysis of government data that shows the scale of German, Chinese and Korean convergence there. Cathodes, anodes, separators, assembly lines, the full battery supply chain is here," said Dirk Woelfer of the German-Hungarian Chamber of Commerce in Budapest. "This is a foot in the door to Europe." Recipients of such subsidies included the likes of German automakers BMW (BMWG.DE) and Mercedes-Benz (MBGn.DE), and battery makers such as China's BYD and Korean rival Samsung SDI (006400.KS). The median subsidy level has been 15% of investment. In total, Hungary has received over 14 billion euros ($15 billion) in foreign direct investment into its battery sector alone in the past six years, according to government figures. Major investments are broadly classed as those worth over 5-10 million euros, varying with factors such as jobs created. (Source Reuters)