The ElectroMobility Poland (EMP) hub is not only an ambitious automotive project—it is an instrument of state economic policy based on precise assumptions and an understanding of macroeconomic processes and the scale required to redefine the role of the automotive sector in Poland. As an economist by education, I understand perfectly well that this sector is not a symbol of prestige, but a new engine of real economic growth for the country. This investment is also an example of how funds from the National Recovery Plan can be effectively invested in the Polish economy, guaranteeing its stable foundations for growth, while creating real opportunities for development and expansion for entrepreneurs in the industry.

In Poland, the automotive industry accounts for over 8% of GDP and generates as much as 13.5% of exports – these are not just dry figures, but proof of the strategic importance of this industry for the entire national economy. Both in Poland and across Europe, this sector also brings added value to many segments of the economy. The steel, chemical, textile, ICT, repair services and many, many other industries benefit from a developed automotive sector. As a result, every euro invested in the automotive industry brings an average return of €2.6. This is one of the highest economic multipliers in industry, making the automotive industry a natural candidate for public and EU funding. This is the case in many countries in Europe and around the world.

Joint venture strategy, technology transfer, industry standards

Modifying the EMP project assumptions makes it more realistic and reduces risks. The joint venture model with one of Asia’s leading manufacturers not only protects against technological and financial risks, but above all enables the transfer of know-how and the establishment of local production facilities — in line with the recommendations of the European Commission and the assumptions of the National Recovery Plan (KPO) regarding the creation of sustainable competitive advantages. A strong industry co-investor introduces automotive industry standards, thereby limiting the challenges associated with public shareholding in such a complex and multi-faceted project.

The JV model not only allows us to use the latest technologies, but also enables us to influence their development in relation to the European market. The location of the headquarters in Jaworzno and the majority stake mean that key decisions regarding the future and development of the company will be made in Poland. This creates a local ecosystem of suppliers and subcontractors who have access to globally applied standards and solutions. This translates into the possibility for Polish companies to enter segments with higher added value and, in the long term, to become independent of imports of key technologies. In practice, this means strengthening the domestic industry and better preparation for the next waves of technological transformation in the automotive industry.

Thanks to the possibility of obtaining funds from the National Reconstruction Plan, the project also has comprehensive financing secured from the start of the investment, which protects it from downtime and capital shortages, and also allows for strategic planning in the long term.

When in trouble, turn to TOGG? Lessons from Turkey and the US

The EMP project is often compared to the so-called “Turkish Izer,” as Togg is called by the media — a company that introduced an electric SUV to Turkish roads and is now planning to expand into the German market. This comparison is intended to put the Polish project in an unfavorable light — because although both initiatives started at the same time, today the Turkish company is already a fully-fledged OEM, while the Polish one is only at the beginning of its investment. Criticism of the EMP project is justified to some extent — in its previous form, it had its ups and downs, and ultimately, due to a lack of adequate funding, it had to be suspended and the entire concept of the project updated. However, instead of approaching this emotionally, it is worth looking at this lesson from a distance and drawing constructive conclusions from it.
TOGG was established as a consortium of five of Turkey’s largest companies with active state participation, which proposed a comprehensive support system on an unprecedented scale. It included direct subsidies and capital contributions, tax exemptions, customs duties and preferential credit terms, and even the transfer of land for a factory in Gemlik. Turkey also announced public procurement: state institutions committed to purchasing as many as 30,000 vehicles, ensuring reliable demand for the start of production. This proves how crucial not only a clear vision is, but also financial stability, consistency in implementation, and the determination of the owner.
This strategy has enabled the rapid development of production facilities and strong technological partnerships. In the key area of batteries, the Turks have turned to Chinese giant Farasis, with whom they have launched a joint venture, Siro, to produce cells. As a result, serial production of the Togg car began in the new factory in 2022, with a capacity of up to 175,000 cars per year, although this is not yet fully utilized, which poses a challenge for the owners. The Turkish media reported on attempts to attract an additional industry partner.
On the other hand, the experience of international automotive start-ups is also particularly instructive in terms of the risks they face. Take the example of the American startup Canoo, which plans to produce various types of delivery vehicles based on a unified floor platform called Skateboard. This example shows how dangerous it is to start an ambitious project without securing full financing and a stable business model. Despite its innovative platform and strong investor interest, with letters of intent to purchase vehicles from NASA and AMAZON, the company quickly began to lose liquidity, leading to cuts, delays, and uncertainty about its future. This resulted in the company filing for bankruptcy.
The problem was not only the scale of expenditure, but also the lack of a strong industry partner that could contribute both capital and mature production expertise and high standards. This is a lesson that in the automotive industry — which requires multi-billion dollar investments and a long return horizon — investor enthusiasm cannot replace solid capital foundations and proven partnerships. Thanks to its joint venture model with a global manufacturer, EMP has minimized these risks from the outset by focusing on a sustainable and balanced project structure.

EMP and KPO – full alignment of objectives

According to official documents, the strategic objectives of the National Recovery Plan (KPO) are: rebuilding the economy’s growth potential, increasing socio-economic resilience, transforming towards a green circular economy, and developing digital technologies, as well as supporting reforms and investments in key areas.

How does the EMP project fit into the strategic objectives of the National Recovery Plan?

1. As a large-scale industrial project, EMP has the potential to restore and strengthen the role of the Polish automotive industry in the economy. By creating a complete value chain – from research and development, through component production, to the export of finished vehicles – the project generates thousands of jobs and increases Poland’s share in the global electromobility market. This directly rebuilds the potential of a sector that has seen production decline to mid-1970s levels in recent years, resulting in a significant reduction in supplier activity.
2. The joint venture model with a global Chinese manufacturer reduces financial and technological risks. The partner contributes know-how, access to advanced technologies and global markets, making the project less vulnerable to economic fluctuations and disruptions in supply chains. EMP diversifies the Polish automotive industry, making it independent of individual segments and partners, thereby strengthening the resilience of the entire economy. The creation of JVs with partners from outside the EU is a model promoted by the European Commission, as confirmed in official EU documents.
3. The production of electric vehicles and the development of battery technologies within the EMP support the energy transition and the reduction of emissions in transport. Cooperation with a technology partner also includes the digitization of design processes, data-driven production management, and the integration of e-mobility systems with charging infrastructure. The project also involves the implementation of an EMP Hub creating a coherent ecosystem of companies and services related to electromobility.
4. EMP is an investment in a sector with one of the highest economic multipliers in Poland. It supports the modernization and restructuring of the domestic automotive industry, shifting it from the role of a supplier of low-margin components to that of a manufacturer of innovative, high-margin products. The project is becoming a tool for implementing the state’s industrial policy, contributing to strengthening Poland’s position in the European and global automotive industry. The economic effect of every euro invested in the automotive industry is multiplied in the factory’s surroundings and the wider economy: it generates employment, additional services, supply chains, innovation, and consumption growth.

The direct, indirect, and induced impact of ElectroMobility Poland’s investment translates into real GDP growth, thousands of jobs, and measurable fiscal benefits for the state. This also explains the state’s involvement and the main financing of the project from the National Reconstruction Plan (KPO). As a company with a majority public shareholding, EMP is subject to all procedures enabling full control over the legitimacy and effectiveness of expenditure.

EMP HUB and a lesson from TALGO, the Spanish high-speed rail manufacturer.

The story of the Polish State Investment Fund’s (PFR) attempt to purchase Spanish rolling stock manufacturer TALGO may serve as an important lesson. The interesting initiative to purchase a company with expertise in high-speed rail construction was supposed to be a catalyst for the modernization of the Polish railway industry. Instead of modernizing Polish railways based on the purchase of foreign rolling stock, the state treasury is buying a company that has built up extensive know-how in this field and, as it turns out, is up for sale. Sounds like a good plan. However, despite PFR submitting the most attractive offer, the transaction was blocked by a decision of the Spanish government.

This decision was explained by the need to protect its strategic sector. Today, EMP, in cooperation with a Chinese automotive giant, can play a similar role in the automotive industry as the purchase of Talgo was supposed to play in the railway industry.

With its growing economy and high purchasing power, Poland remains a tempting target for both “old” automotive companies and new, ambitious players from China who are rapidly conquering the European market. Polish consumers are known for their openness to new brands. In recent years, Poland has increasingly become the first stop for Chinese companies planning to expand into the European Union. This is due to its favorable geographical location, developed logistics, growing consumer power, and a less “hermetic” market than in Western countries. Examples of brands such as Omoda, Realme, Hisense and Haier prove that it is the Polish market that is the gateway to larger and more affluent European markets.

Let’s take advantage of global trends and the openness of Polish consumers for the benefit of the economy. Instead of becoming an attractive market, we have created a framework for mutually beneficial cooperation in the automotive sector. For Poland, this is an opportunity not only to attract the latest technologies in the field of new drives and develop production. It is an opportunity for the development of the entire industry and an attempt to mark its presence in it to a greater extent than just production. It is an opportunity to achieve in the field of electromobility what TALGO was supposed to bring to the railway industry — strengthening our position, developing our competences, and securing a stable place in European industry. The National Recovery Plan was created to achieve these ambitious goals.