The new Hungarian government, led by Prime Minister Péter Magyar, has introduced a policy shift placing greater emphasis on environmental protection and public safety in the regulation of the electric vehicle (EV) battery sector. The measures followed the discovery of groundwater contamination at Semcorp’s Debrecen plant, where aluminium concentrations reportedly exceeded legal limits by more than 13,000 times, alongside elevated levels of arsenic and lead. Authorities also ordered the facility to cease operations after identifying fire safety deficiencies, including malfunctioning suppression pumps and altered sensors, which were assessed as posing a risk to people and property.

Semcorp has launched a full-scale inquiry and pledged to cooperate with officials, while the Hungarian government is moving forward with plans to establish a dedicated regulatory authority to oversee the industry later this year.