SEOUL — South Korea’s SK Innovation, mentioned on Friday it can make investments 1.3 trillion received ($1.16 billion) to construct its third battery plant in Hungary.

The corporate, which provides batteries to Volkswagen Group, Ford and Hyundai Motor Group amongst others, will start development within the third quarter of this 12 months, the corporate mentioned.

The plant could have an annual capability of 30 gigawatt-hours of batteries. The corporate’s first battery plant in Hungary has an annual capability of seven.5 gigawatt-hours of batteries and commenced industrial manufacturing within the first quarter final 12 months.

The third Hungary plant is a long-term venture, which requires a complete funding of about 2.6 trillion received as much as 2028, SK Innovation mentioned, including that it plans to boost further funds via exterior financing if wanted.

Earlier on Friday, SK Innovation mentioned in a regulatory submitting that its third Hungary battery plant will goal industrial manufacturing in early 2024.

The funding comes as international automakers’ shift to electrical autos to adjust to environmental rules, resulting in rising demand for EV batteries.

SK Innovation, which has battery manufacturing websites within the U.S., Hungary, China and South Korea, at present has an annual capability of about 40 gigawatt-hours of batteries, aiming to ramp up its annual capability of about 125 gigawatt-hours of batteries in 2025.