CATL’s planned battery cell production facility in Debrecen, Hungary, has fallen behind schedule, delaying local supply plans for European automakers including Mercedes-Benz and BMW, according to a report by Automobilwoche.
The Chinese battery manufacturer announced the project in 2022 as its second European battery factory after its German facility in Arnstadt. The Debrecen site is intended to supply battery cells and modules to major automotive customers across Europe.
Production Start Delayed
CATL had previously targeted March or April 2026 for the start of series battery cell production at the Hungarian plant. However, Automobilwoche reported that battery cell manufacturing has not yet begun.
According to the report, the factory itself has largely been completed, but the company is still awaiting the necessary regulatory approvals required to begin test production and subsequent commercial operations.
The Debrecen project was originally announced with a planned investment of approximately €7.34 billion and is expected to be developed in multiple phases.
Mercedes-Benz Temporarily Sourcing Batteries From China
The delays have already affected parts of CATL’s European supply chain.
According to Automobilwoche, Mercedes-Benz had initially planned to source battery packs for its new electric VLE van from the Debrecen facility. However, battery supplies are currently being shipped from China instead.
Vans CEO Thomas Klein told Automobilwoche that CATL is covering the additional logistics costs associated with the temporary arrangement.
BMW has not yet been impacted by the delay. The automaker’s nearby Debrecen vehicle plant is scheduled to begin receiving battery cells from CATL’s Hungarian factory in 2027. Until then, battery supplies continue to be sourced from China, while BMW assembles its high-voltage battery systems independently.
Module Production Underway
Although battery cell production has yet to commence, CATL has started battery module manufacturing at the site.
The company recently launched production in a newly completed facility with an annual capacity of 5 GWh. At that level, output could theoretically support approximately:
- 50,000 electric vehicles equipped with 100 kWh battery packs, or
- 125,000 smaller electric vehicles using 40 kWh batteries.
The battery cells used in these modules are currently imported from other CATL manufacturing facilities.
CATL had already begun module production in Debrecen in late 2024 using two production lines housed in a leased facility before expanding operations to its newly constructed site.
Long-Term Expansion Plans
The first phase of the battery cell plant is designed for an annual production capacity of 40 GWh.
Over the longer term, CATL plans to expand the site to as much as 100 GWh, making it one of the largest battery manufacturing facilities in Europe.
The factory is expected to play a key role in supporting Europe’s growing electric vehicle industry and localizing battery supply chains for regional automakers.
Regulatory and Environmental Scrutiny
According to Automobilwoche, the production delays are linked to pending permits and tighter environmental oversight requirements.
The project attracted additional attention in May after a green-colored liquid leaked at the facility, prompting an investigation by environmental authorities.
CATL later said the substance was a coloring agent used during routine leak-testing procedures.
Despite the delays, the company continues to expand manufacturing activities at the site and has indicated that battery cell production will begin once the remaining approvals are secured.
