Electromobility in the Visegrad region – Slovakia

Commissioned by the European Climate Foundation, this report estimated the likely economic impacts associated with, and the potential challenges, to switching car production in Slovakia to battery electric vehicles (EVs) over the long term (to 2040).

This technical report sets out the findings from our analysis of the impacts of Slovakia’s successful or unsuccessful transition to the production of EVs and battery cells. It provides details about the EV manufacturing costs, productivity, the need for investments and the impact on employment by sector and by occupational category. The analysis compares best and worst-case scenarios, representing a successful and an unsuccessful transition.

Key findings:

  • Results show that the stakes are high for Slovakia. In a worst-case scenario in which the switch to EV production does not take place, the GDP of Slovakia will be 10% lower than in a best-case scenario. The overall net employment effect is also significant, with a 4% difference between the two scenarios.
  • At a sectoral level the largest sectoral impacts are directly in the motor vehicle, electrical equipment, and services sectors as vehicle production supply chain transitions from ICE powertrains to electric powertrains.
  • The report lists a few policy recommendations, which can help Slovakia preserve its central role in the automotive industry; to create favourable conditions for battery factories but also to invest in its skilled workforce to maintain its place in the global value chains in the wake of the green transition.

Click here for the Autofocus Slovakia report, which combines Cambridge Econometric’s technical report with research and knowledge of GLOBSEC and SEVA (Slovak Electric Vehicle Association) to create a broader overview of Slovakia’s automotive landscape.

János Hidi Head of Sustainable Investment [email protected]