[Regulatory Update] Hungary's Prime Minister Plans to Raise the Cap on Environmental Fines to HUF 5 Billion, With a New Environmental Authority to Oversee EV Battery Production and Recycling

On 3 September 2026, Hungarian Prime Minister Peter Magyar announced plans to raise the cap on fines for the most serious environmental violations to HUF 5 billion (about $16 million) for pollution by large manufacturers, including battery makers. He also said sanctions and fines for environmental violations would be raised to create a real deterrent effect. For repeat violations, he said a "three strikes" principle would be introduced: if a large company violates environmental rules for a third time within five years, a minimum fine of at least 0.5% of its annual net revenue would apply. He also said a new environmental authority, which the government had flagged earlier this summer, would strictly monitor battery manufacturing, recycling and decommissioning.