Eve Energy, a Chinese lithium battery manufacturer, has announced plans to invest over $1 billion in a battery plant in Hungary, aiming to expand its presence in international markets. The board of directors has given the green light to its subsidiary, EVE Power Hungary Kft, to construct a large-scale cylindrical battery project for passenger cars in Debrecen, Hungary. The investment is expected to reach up to RMB 9.97 billion ($1.4 billion). The project is scheduled to take four years to complete and will contribute to enhancing Eve Energy’s global industrial footprint while facilitating its overseas operations.
The company aims to meet the growing demand for new energy vehicle (NEV) power batteries from key customers in Hungary and cater to the European market. In May, EVE Power Hungary signed an agreement with Debreceni, a subsidiary of Hungary’s Debrecen government, to acquire land for the production of cylindrical power batteries. The purchased land, covering an area of 45 hectares, is located in Debrecen’s northwest industrial zone. The total cost of the land purchase is approximately 12.86 million euros.
Although Eve Energy’s announcement did not provide further details, the investment seems to be in preparation for supplying batteries to BMW. In September 2022, the company announced a battery supply partnership with BMW Group for the latter’s Neue Klasse line of models. BMW disclosed that it had awarded contracts worth over 10 billion euros to Eve Energy and CATL to fulfill the demand for cells in their new generation of vehicles. As part of this collaboration, Eve Energy and CATL will each establish two battery plants in China and Europe, with an annual capacity of 20 GWh. BMW also expressed its intention to seek partners for the construction of two additional battery plants in the North American Free Trade Area.
Eve Energy is one of China’s leading battery manufacturers, having installed 1.33 GWh of batteries in May, securing a 4.71 percent share and ranking fourth in the industry, according to the China Automotive Battery Innovation Alliance (CABIA). The company’s latest investment in Hungary aligns with its strategy to bolster production capabilities and expand its global market reach in the battery industry.
