During his landmark visit to Budapest, Vice President JD Vance emphasized a renewed phase of collaboration between the United States and Hungary, focusing on energy, technology, and security. The initiatives detailed below promote a joint agenda centered on innovation, strategic stability, and a long-term economic and security partnership.
Enhancing Energy Partnership
- U.S. Crude Oil Purchases: Hungary’s MOL Group acquired 510,000 tons of crude oil, valued at $500 million, from the United States and American energy firms, strengthening the strategic energy alliance.
- Small Modular Reactor (SMR) Study: As part of an Intergovernmental Agreement on civil nuclear energy, the U.S. is assisting with a front-end engineering and design (FEED) study to enable Hungary to deploy a new U.S. SMR. This study sets the stage for Hungary to procure and construct up to 10 U.S. SMRs, potentially valued at $20 billion. U.S. companies like GE Vernova, Holtec, and Westinghouse have signed MOUs with Hungary’s electricity provider, MVM, to collaborate on SMR projects.
- Paks 1 Lifetime Extension: Westinghouse and MVM have agreed to explore extending the operational life of the Paks 1 nuclear power plant using Westinghouse technology and to collaborate on SMR technology. This builds on the 2025 agreement for Westinghouse to supply nuclear fuel, further enhancing Hungary’s energy security through U.S. collaboration.
Expanding Commercial and AI Collaboration
- GE Healthcare and Semmelweis University: An MOU was signed to establish an Oncology Center of Excellence in Hungary, utilizing U.S. medical technology and AI innovations to enhance cancer care for Hungarian patients and increase access to advanced American healthcare solutions.
- Microsoft, the Government of Hungary, and Gábor Dénes University: An MOU was signed to provide digital and AI training solutions for small and medium-sized enterprises to improve technological readiness.
- Microsoft and the Government of Hungary: An agreement was reached to secure digital infrastructure for public institutions using Sovereign Cloud solutions.
Promoting Regional Peace, Security, and Defense Cooperation
- Acquisition of U.S. High Mobility Artillery Rocket Systems (HIMARS): Hungary announced intentions to purchase $700 million worth of U.S. HIMARS, integrating them into its defense strategy. This move aims to enhance Hungary’s deterrence capabilities, support American manufacturing jobs, and bolster NATO’s defense posture along the Eastern Flank.
- Secure Communications MOU: L3 Harris and 4iG signed an MOU to integrate L3 Harris communication technology into Hungary’s HIMARS program, ensuring compatibility with NATO and U.S. forces.
- Space and Defense Cooperation Agreement: Northrop Grumman and 4iG initiated a joint effort to develop a geosynchronous satellite capability for Hungary, focusing on national security, space resilience, and supporting the U.S. industrial base for geosynchronous satellites.
