Mežica - The Slovenian maker of starter and industrial batteries TAB, which had planned to set up a Li-ion battery plant with a Chinese partner, for which it would also receive a government subsidy, has postponed the project indefinitely due to uncertain conditions on global markets and hindered supply chains.

TAB announced on Monday that the company would not sign the contract granting it a government subsidy for the Li-ion battery plant project, as it was deemed too risky.

"However, this does not mean that TAB has completely abandoned the project, but only postponed it to a time when market conditions would allow it to be carried out," TAB director Bogomir Auprih stressed in a press release.

The Chinese-Slovenian joint venture by companies TAB Mežica and Haidi Energy Technology would have received a EUR 9.8 million government subsidy for the project of setting up a Li-ion battery plant, initially worth an estimated EUR 50 million.

At the beginning of December, when the government approved the subsidy, Auprih had welcomed the decision as a major step towards the implementation of the project.

He also explained at the time that production could start in 2023, but added that the Covid-19 epidemic had slowed down the progress of the project, which has now been put on hold.

The companies had originally planned to launch the Li-ion battery plant in Prevalje in northern Slovenia in 2022.