The project for a battery factory for electric vehicles in the Czech Republic is beginning to take real shape

Published: 14.10.2021 Related countries:  Israel Israel

The planned gigafactory is expected to generate several thousand new jobs and a few-percent increase in the Czech GDP.

In the Czech Republic, there have been some talks about building a so-called gigafactory that produces batteries for the growing electric vehicle market. Given that the Czech Republic is home to a deposit of around 3% of the world's lithium reserves, which is needed for the production of electric batteries, it is an ideal location for this gigafactory. The factory is to be built in Prunéřov, near lithium deposits.

ČEZ (Czech Energy Plants) and the Czech government are negotiating the project with car manufacturers Škoda Auto and Volkswagen, as well as with battery producers. Negotiations are already at an advanced stage - ČEZ wants to conclude the contract by the end of 2021. The factory is planned to be completed in 2025, with full production capacity by 2027. Capacity should range from 30 to 40-gigawatt hours, which would be enough to power 400 to 800,000 cars a year. Investment in the project is expected to be worth more than €2 billion.

The construction of the plant would generate 6 000 direct jobs in the investment phase alone, with around 33 000 additional jobs created in supplier companies. The gross domestic product of the Czech economy would increase by an estimated 185.9 billion CZK (27.7 billion ILS), equivalent to 3.6% of the Czech Republic's GDP in 2020.

Source: ČIA NEWS, E15
Prepared by the team of CzechTrade/Czech Invest Israel.