China's Gotion High Tech and Slovak partner InoBat will invest 1.2 billion euros ($1.29 billion) to build an electric vehicle (EV) battery plant in Slovakia, the country's Economy Minister Denisa Sakova said on Thursday.

The consortium will receive 150 million euros in subsidies and 64 million euros in tax breaks, Sakova told a televised news conference.

The companies had said last November they aimed to build a plant producing EV batteries with a combined annual output of 20 gigawatt hours in the initial phase.

Production is due to begin at the start of 2027 and full capacity will be reached mid-2027.

The investment will be the second biggest in Slovakia's history and helps the country as the car sector goes electric, Sakova said.

Automobile production is major sector in Slovakia's economy.

Countries have lined up to win investment in the sector amid European efforts to boost its EV battery industry and reduce reliance on dominant Asian battery makers.