China-based battery manufacturing company Gotion High and its Slovakian partner InoBat have entered a memorandum of understanding (MoU) to develop an electric vehicle (EV) battery facility in Slovakia.

The companies have created a joint venture (JV) company, Gotion InoBat Batteries, which will build the plant.

The JV intends to begin production at this facility in 2026, reported Reuters.

In the beginning, it is expected to produce EV batteries with a total annual output of 20GWh.

In September, Gotion and startup InoBat announced plans to collaborate on the establishment of an EV manufacturing plant in Europe at a new location.

Slovakian Deputy Prime Minister and Economy Minister Denisa Sakova was reported by the media agency as saying that the development of the facility was essential to the future of the car industry and the Slovakian economy.

According to the ministry, the facility in Surany, 93km east of Bratislava, is expected to generate up to 1,500 jobs. The manufacturing facility’s capacity could potentially be increased to twice its original capacity in the future.

The agreement follows after both companies announced earlier this year that Gotion would acquire a 25% share of InoBat and assist the startup with supply chain and technological support as it expands EV battery production.

Gotion is a supplier to German car manufacturer Volkswagen.