ČEZ and Czech MIT make a significant step toward Czech Gigafactory

ČEZ group – a sustainable energy organisation – and the Czech Ministry of Industry and Trade (MIT) have achieved a major development in constructing a Czech Gigafactory.

ČEZ group and the Czech Ministry of Industry and Trade have collaborated to sign a Memorandum – documents that outline the basic conditions for developing a Czech Gigafactory – a significant milestone for the country building industry-leading infrastructure for the manufacture of electric vehicle batteries.

The agreement forms a foundation for potential future investors to affiliate with the project. In addition to the ČEZ group, a representative of the electric vehicle automotive industry and a battery manufacturer will also be participating in the Czech Gigafactory.

Benefits of the Czech Gigafactory

The novel Czech Gigafactory is estimated to have an annual production capacity of 40 GWh, equating to around 52bn Czech koruna – around €2bn – which would be an astronomical addition the Czech economy. The project will also see around 2,300 new jobs become available for the construction of the Gigafactory and to facilitate it when it is fully operational.

Karel Havlíček, the Czech Deputy Prime Minister, said: “The automotive industry is a cornerstone of the Czech economy, accounting for nearly 10% of our GDP.  Now we must, exactly in line with our country for the Future’ strategy, take steps to take it to the next level. Electromobility is a reality, and it is very important that one or several battery cell factories be built in the Czech Republic.

“Every factory can provide work for more than two thousand people directly at the plant, and thousands of more jobs will be created in downstream sectors.  Our government is prepared to secure conditions to support the project, including by building key infrastructure.”

Pioneering a green future

The construction of the new Czech Gigafactory will enable the country to advance both its energy and automotive industries significantly, putting the Czech Republic at the forefront of European electric vehicle production. The Gigafactory will also improve conditions in the local area, as the plant and its associated lithium mine will be utilised to phase out the local coal industry.

Daniel Beneš, the Chairman of the ČEZ group Management Board and CEO, said:ČEZ is the largest operator of public charging stations in the Czech Republic and we are prepared to expand our business to other segments of electromobility.  We are preparing a lithium mining project at Cínovec, which could be used in a battery cell factory in the country.

“As a part of the contemplated consortium of investors, where we could act as the developer, which will provide, among other things, the necessary land and take care of the supply of power and energy services.  A suitable site is, for example, the grounds of the decommissioned Prunéřov 1 power plant.”

The ČEZ Group and the Ministry of Industry and Trade are now working diligently to negotiate with possible investors in the Czech Gigafactory, most notably those in the sectors of battery production and electric vehicle companies.

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