German carmaker Audi's Hungarian unit will invest 120 billion forints ($320.2 million) to ramp up electric engine production at its factory in western Hungary, Foreign Minister Peter Szijjarto said on Tuesday.

Szijjarto said Audi, which earlier said it could substantially boost output at the plant, would start manufacturing the new engines from 2025, adding 500 jobs at the plant, which Audi says is the world's biggest engine factory.

($1 = 374.76 forints)

(Reporting by Anita Komuves and Gergely Szakacs)

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