PRAGUE: The Czech government and majority state-owned utility CEZ could sign on Tuesday a memorandum on support for a new electric vehicle battery plant, with investment running to tens of billions of crowns, CTK news agency reported.
Citing a government document being discussed at a cabinet meeting on Monday, CTK said that investment in the initial phase of the plant, or so-called gigafactory, would total at least 52 billion crowns ($2.40 billion) and could create 2,300 new jobs.
Industry Minister Karel Havlicek told CTK the government would seek to approve plans for a memorandum of understanding on Monday.
CEZ declined to immediately comment.
CTK said that, according to the document, CEZ was prepared to become an investor in the project, as well as an energy and lithium supplier.
The state is also looking to sign up other investors in the plant as the European and global automobile industry shifts toward an electric future.
Havlicek told Reuters this month the state was holding talks with two potential partners, including Volkswagen, which owns Czech carmaker Skoda Auto.
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Batteries that power electric cars and which weigh up to 600 kilograms (1,300 pounds), represent a considerable part of the vehicle’s value.