The company, called Andrada, will be based in northern Hungary, near where China's CATL is building a major battery factory in Debrecen.

Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto, who was in Slovenia for the Bled Strategic Forum earlier this week, told the Hungarian press agency MTI his country would chip in 4.7 billion forints for the project.

Worth 10 billion forints, the Slovenian factory will have the capacity to recycle 10,000 tonnes of batteries a year.

Andrada executive director Peter Tibaut stressed in a press release the role of the project for sustainability of Europe's electric mobility.

"As the biggest Slovenian investment in Hungary to date the project is of strategic importance for the Hungarian government, which will suitably support it financially," he said.

Minister Szijjarto was quoted by MTI as saying that Andrada "follows environmental standards that are four times stricter than those in place in Hungary".

The company was incorporated by Slovenian entrepreneurs, experts and automotive suppliers, including Hidria Holding director Iztok Seljak, Peter Tibaut, battery maker TAB Mežica and ACH Invest.

Tibaut said the company will be based in Alsozcolci near the city of Miskolc, initially employing 70 tech experts and up to 200 in 2024.

It plans to cooperate with the University of Miskolc and the National Chemistry Institute in Ljubljana.