Ljubljana - The government has approved a EUR 9.8 million subsidy for a Li-ion battery plant that TAB, the Slovenian maker of starter and industrial batteries, plans to set up with its Chinese partner Haidi Energy Technology. The company has welcomed the decision as a major step towards the implementation of the project.

The government decision, taken on Sunday evening, comes after the project was classified as a development project for the purposes of the 2021-2024 budgetary framework.

The Chinese-Slovenian joint venture, called TAB-Haidi will get the first instalment of the subsidy this year and the final part in 2023.

The government says the project, initially worth an estimated EUR 50 million, will create 100 jobs, of which 20 high-skilled posts.

The company originally planned to launch the plant in Prevalje in north Slovenia in 2022 but has now pushed back the start due to the Covid-19 pandemic.

TAB director Bogomir Auprih told the STA production could be launched in the first half of 2023. He estimates 120 new hires will be needed initially and another 60 in the second phase of the project.