In the context of the current global economic transformation, the rapid rise of the
electric vehicle industry has made the battery industry a new focus of competition
among countries. Despite its relatively small economic and demographic size, Hungary
has garnered significant academic interest by emerging as the world’s third-largest
battery producer in 2021. The study employed a dynamic vector autoregressive (VAR)
model to determine that fluctuations in the Hungarian exchange rate have a notable
immediate influ-ence on exports in the battery business，which suggests that changes
in exc-hange rates directly affect international competitiveness. The battery sector
is experiencing a progressive increase in the influence of fluctuations in na-tural
gas demand, particularly in terms of their impact on production costs and supply chains.
The battery industry has had substantial advancements in technological innovation
and production efficiency as a direct result of the expansion in manufacturing production.
And Hungary’s total industrial development is significantly influenced by the long-term
effects of export expansion in the battery industry.
JEL Codes: L62, E44, O14, C22
