Paradoxes of Green Transition and Developmentalism:
The Case of EV Battery Production in Hungary
Judit Ricz – Andrea Éltető
Problems of Post-Communism – Published online: 27 Feb 2025
Abstract
Why does Hungary, a small peripheral economy within the EU, aspire to become the second-largest European battery producer by 2030? Our principal aim is to explain Hungary’s ambitious pursuit of the state-sponsored creation of this new sector. We argue that the Hungarian strategy does not align with the real developmental state approach and that the best way to understand it is to combine the dependency and illiberalism arguments, building on recent developments in the comparative capitalism field. The Hungarian case underscores the primary limitations of these theories in comprehending contemporary changes and challenges, including the misapplication of green industrial policy.