Belgian group Avesta Battery & Energy Engineering (ABEE) is planning a EUR1.4bn (US$1.53bn) battery plant in Romania's Galati, creating up to 8,000 jobs, the city's mayor reportedly said.

"Our city has become more and more attractive to investors," Galati Mayor Ionut Pucheanu said on a Facebook post cited by Reuters.

The company's spokesperson was not immediately available and did not respond immediately to an emailed news agency request for comment.

The lithium-ion factory would have production capacity of 22GWh, news agency Agerpres reported.

"Battery production is crucial for the (European Union) due to the current market situation where China dominates the supply of Li-ion batteries," the agency quoted an ABEE official as saying.

"More production capacity is needed in the future to meet growing European demand."

The plant's production would be aimed at the car sector, with Renault's Dacia and Ford producing vehicles in Romania, as well as batteries for use in the energy storage market.

In May, ABEE signed a contract with North Macedonia to build a factory for the production of electric batteries for cars, Reuters noted.