Contemporary Amperex Technology Co Ltd (CATL), the world’s largest battery maker for electric vehicles, has confirmed that its battery plant in Hungary is “proceeding as planned”. This statement follows rumors that the construction of the Hungarian plant had been halted due to environmental issues. The plant is a key project for both China and Hungary, as the Central European country strives to attract Chinese manufacturers to create a global hub for EV batteries.
CATL’s planned gigafactory in Debrecen, Hungary, will cover an area of 221 hectares, equivalent to around 280 soccer fields, and will supply both cells and modules to European automakers. With a battery production capacity of 100 gigawatt-hours, the plant has attracted a total investment of 7.34 billion euros ($7.28 billion) from CATL and is expected to create 9,000 new jobs for locals.
See also: CATL invests €7.34 billion to build EV battery production base in Hungary
“The plant is of great significance to Hungary as the government seeks more ties with Eastern partners like China,” said Zhang Xiang, an auto sector researcher at the North China University of Technology. “It will also help accelerate its plan to become a major EV hub under the European Union’s plan to ban new internal combustion engines from 2035.”
Hungarian Minister of Foreign Affairs and Trade, Peter Szijjarto, noted that this investment is “the biggest ever greenfield investment” in the history of Hungary, and will make Hungary one of the leading battery production sites in the world.
CATL’s Hungarian plant is part of the company’s strategy to expand its international presence with more overseas plants. Despite the unstable global supply chain due to the COVID-19 pandemic, the company achieved mass production of lithium-ion battery cells as scheduled at its factory in the German state of Thuringia in late December.
See also: CATL’s Qilin Battery Enters Mass Production, Boasting 13% Higher Capacity than 4680 batteries
“The Hungarian plant will help CATL get closer to automakers such as Mercedes-Benz, BMW, and Volkswagen to gain a lead in the European market and boost overseas expansion,” added Zhang. With Hungary’s rising preferential policies for Chinese companies, the plant is a “win-win” project for both countries.
