The government of Serbia has approved a memorandum of understanding (MoU) with Minth Holdings Limited, a Chinese automotive parts manufacturer, paving the way for an €870mn investment, a government statement said. 

The planned investment reflects Serbia's growing appeal as a destination for international manufacturing and its strategic efforts to integrate into the burgeoning electric vehicle market.

The ambitious project will span a decade and is expected to create 2,220 jobs. The investment will be allocated to various new facilities dedicated to the automotive and related industries, including electric vehicles, buses, photovoltaic components, and building materials.

Minth Holdings currently operates production facilities in Loznica and Sabac, Serbia. Recently, Minth Automotive Europe, headquartered in Loznica, secured a state subsidy of €23.5mn to expand its production activities. This subsidy is designated for the second phase of constructing an auto components factory in Loznica.

The International Finance Corporation (IFC) is considering a loan to Minth Group Limited to support the expansion of operations in Serbia and Poland. According to IFC data, the overall expansion project, valued at €598mn, aims to enhance Minth’s capabilities in manufacturing casings for electric vehicle batteries.

In Serbia, Minth's expansion plans include augmenting the existing facilities of Minth Automotive Europe DOO (MAE) in Loznica for electric vehicle battery casings production. Additionally, the expansion will support the construction of three new production lines in Sabac.