South Korean battery maker SK On Co. on Tuesday welcomed the European Union’s approval on Hungary’s aid to its electric vehicle battery plant construction in Ivancsa, south of Budapest.

“We welcome the EU’s decision,” the company said. “We will do our best to contribute to Europe’s electrification and decarbonization plans, and help the local community‘s development.”

Earlier, Reuters reported the European Commission approved Hungary’s planned support of 209 million euros ($230 million) for SK On’s third EV battery plant in the country.

SK On, the battery spin-off of South Korean energy giant SK Innovation Co., last year announced it will build its third EV battery plant in Hungary with a production capacity of 30 Gigawatt hours (GWh) after investing a total of $2.29 billion by 2028.

SK On said it aims to grow into a global battery producer with its total production reaching 500 GWh by 2030.

As of end-2021, SK On had a cumulative order backlog of 1,600 GWh. (Yonhap)