(Reuters) – German car group Volkswagen (ETR:VOWG_p) has no plans for another battery factory site at present, Chairman Oliver Blume said on Wednesday after talks with Czech government officials this week.

“Based on market conditions, including the sluggish ramp up of the BEV market in Europe… there is for the time being no business rationale for deciding on further sites,” he said in a statement provided by Volkswagen’s Czech unit Skoda Auto.

Volkswagen has been looking at a possible site for a gigafactory for electric car batteries in eastern Europe.

The Czech Republic has pushed for the deal as it seeks to secure the future of its all-important car sector as the global vehicle industry moves shifts away from fossil fuels.

The German group has already selected sites in Salzgitter (Germany), Valencia (Spain), and St. Thomas (Canada), and Blume said these three locations had production potential of up to 200 GWh per year.

Volkswagen said it remained committed to e-mobility, including at Skoda Auto, which is the country’s biggest exporter and is running a programme rolling new electric models out.