The provision of a long-term loan of up to € 25 million equivalent (in US dollars) to Volta Energy Solutions Hungary Kft, a majority owned subsidiary of Solus Advanced Materials Co, LTD, for the construction of a ultra-thin copper foil factory for electric vehicle (EV) batteries in Tatabanya, Hungary.
The Project supports Solus Advanced Materials' investment plan to construct an ultra-thin EV battery copper foil factory in Hungary in order to supply major EV battery producers in Europe.
ETI score: 63
The transition impact of the proposed project will be derived from Green and Competitive quality.
The Project will contribute to the circular economy of the EV battery sector, as it relies 100 per cent on scrap copper. The Project is Paris Aligned and meets the EU Taxonomy requirements under category Manufacture of batteries [and respective components] and the EU Circular Economy Classification.
The project also supports a foreign direct investment of substantial size.
VOLTA ENERGY SOLUTIONS HUNGARY KFT
Volta Energy Solutions Hungary is owned by Solus Advanced Materials of South Korea, one of the global leading ultra-thin EV battery copper foil producers.
EBRD Finance Summary
Total Project Cost
1. Financing structure: the EBRD is offering a tenor, which is longer than available to the client in the market on reasonable terms and conditions.
2. Standard-setting: Client seeks/makes use of the EBRD expertise on higher environmental standards.
Environmental and Social Summary
Categorised B (2019 ESP). The Environmental and Social Due Diligence (ESDD) concluded that the environmental and social (E&S) impacts associated with the Project are site specific, and readily identified and addressed through established mitigation measures. The Bank Project is the expansion of an existing copper foil manufacturing plant located in the industrial zone in Kornye, 70 km West of Budapest within the boundaries of the existing copper foil manufacturing plant. The plant will supply copper foil to the Electrical Vehicle batteries.
The screening for the project decision issued by local Environmental Protection Authority under the EU EIA Directive and based on the preliminary environmental examination in accordance with the relevant Hungarian legislation, concluded that full EIA is not required. The Bank has undertaken an independent ESDD of the Project inclusive of on-site visits, review of documents and meetings with local regulators.
The ESDD confirmed that the Company operates in compliance with National and EU environmental legislation. An ISO 14001 compliant Environmental Management System and an ISO 45001 compliant Occupational Health & Safety Management System is being developed and adopted and the Integrated Management System (with systems certification planned by the end of 2021) and the Company has the capacity to fully implement the Bank's PRs.
An ESAP has been developed and agreed with the Company to further strengthen the E&S management of the operations and thus includes among others the need for higher ESG and climate reporting in line with EU requirements such as the forthcoming EU Corporate Sustainability Reporting Directive (CSRD). The ESAP also includes further strengthening of the EHS (including certification to ISO 14001 and ISO 45001) and quality management systems (certification to IATF 16949, International Automotive Task Force standard for supply chain for the automotive sector); additional life cycle analysis; as well as the strengthening of HR policies to include adoption of a collective agreement and a contractor management plan.
The ESDD also confirmed that the Project is Paris Aligned and meets the EU Taxonomy requirements under category Manufacture of Batteries (and respective components) and will rely on 100 per cent scrap copper (both from end-of-life/recycled and industrial waste), thus following the EU Circular Economy objective. A Non-Technical Summary (NTS) is available for the Project.
Technical Cooperation and Grant Financing
Company Contact Information
+36 34 520 053
2851 Környe, Han folyó utca 1., Hungary
PSD last updated
24 Nov 2021
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