Hungary plans to significantly increase potential environmental fines for large industrial companies. The maximum penalty is set to rise to 5 billion forints (about $16 million). The rules will apply to battery manufacturers, among other companies. At the same time, a new environmental authority will more closely monitor battery plant production, recycling, and decommissioning.
Prime Minister Peter Magyar also announced a new penalty system for repeat violations. If a large company violates environmental regulations three times within five years, a revenue-based minimum fine will apply. It will amount to at least 0.5% of the company’s annual net revenue.
Samsung Plant in Göd Cited as Example of Environmental Violations
Magyar cited Samsung SDI’s battery plant in Göd, northern Hungary, as an example. The facility was fined several times between 2022 and 2023 for exceeding emissions limits.
According to the prime minister’s calculations, the planned revenue-based minimum fine would amount to about 5 billion forints for the plant.
Before the election, Samsung said its Hungarian plant complied with environmental and safety regulations. The factory’s environmental permit had been temporarily suspended.
Authorities also took action against Chinese battery component manufacturer Semcorp. In June, its production permit was suspended. Authorities had previously detected widespread aluminum contamination in water samples from monitoring wells around the plant. Semcorp said it was investigating the matter.
