China’s Gotion High Tech and Slovak partner InoBat have signed a memorandum to build an EV battery plant in Slovakia.

Their venture, Gotion InoBat Batteries, aims to start production at the plant in 2026, initially producing EV batteries with a combined annual output of 20 gigawatt hours, the Slovak Economy Ministry said on Thursday. The Slovak plant will have potential to double its capacity in the future

Minister Denisa Sakova said the plant’s construction was key for the future of the Slovakian car industry, which is a major driver for Slovakia’s economy. The plant, in Surany, 93 km east of the capital Bratislava, will create up to 1,500 jobs, the ministry said.

Earlier this year the companies said that Gotion was buying a 25 percent stake in InoBat and would provide the startup with supply chain and technology support as it scales up production of EV batteries. Gotion is a supplier to Volkwagen.