BUDAPEST, July 2 (Reuters) – Hungarian Environment Minister Laszlo Gajdos has threatened to close factories in the EV battery industry that fail to abide by environmental regulations, marking a major policy shift from right-wing leader Viktor Orban, who lost power in April.
From 2021 Orban bet big on EV batteries, attracting foreign investment worth some €26 billion ($29.69 billion), based on a government tally, mainly from South Korean and Chinese manufacturers, and making Hungary a key hub in Europe.
But environmental and health and safety concerns around the plants surfaced as a key issue ahead of the election, where centre-right rival Peter Magyar, who pledged to take a tougher stance on the sector, defeated Orban in a landslide.
“We must restore the balance between industrial development and environmental protection,” Gajdos said in a Facebook post late on Wednesday. “In the past 16 years, this balance has entirely tilted over in favour of industry.”
“Those repeatedly violating regulations, jeopardising the health and safety of Hungarian people and ignoring Hungarian laws have no place in Hungary,” he said, promising to raise pollution fines to what he called Europe’s strictest levels.
On Wednesday, Laszlo Papp, mayor of Debrecen and a member of Orban’s Fidesz party, called on Chinese battery parts maker Semcorp to leave Hungary’s second-largest city due to recent findings of environmental pollution.
The regional government office suspended Semcorp’s production licence in late June after authorities found large-scale aluminium pollution in water samples taken from monitoring wells around the plant.
The Hungarian management of Semcorp, which makes lithium-ion battery separator films and aluminium plastic films, did not immediately respond to emailed questions for comment.
Zsolt Tarkanyi, the Debrecen lawmaker of Magyar’s Tisza party, said on Facebook that the city mayor should resign after the revelations, a call endorsed by Magyar with three victory signs under the post.
Tisza’s popularity has increased further since the election, with a Median survey showing it is backed by 73% of decided voters compared with 21% for Orban’s Fidesz.
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(Reporting by Gergely Szakacs; Editing by Kate Mayberry)
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