Solus Advanced Materials Company announced it would receive EUR24m (US$27m) in state incentives to expand production capacity of battery foil in Hungary, according to reports in South Korea citing chief financial officer Kwak Geun-man.

The cash subsidies, which were approved by the European Commission last week, would be paid by the Hungarian government over the next two years.

The South Korean company, formerly known as Doosan Solus, had already received subsidies worth EUR17.6m for its first foil plant in the country, located in the north-western city of Tatabanya.

Solus Advanced Materials said the funds would be spent on the construction of a second plant next to the existing factory. It would have annual capacity of 23,000 tons of foil primarily for electric vehicle batteries.

The supplier is moving rapidly to strengthen its position in the global battery foil market to support the strong growth in domestic EV battery manufacturers LG Energy Solution and Samsung SDI.

Last November, it acquired a foil plant in Canada previously owned by its former parent company Doosan Group.