Hungary is set to become a major hub for electric vehicle (EV) production with the announcement of Huayou Cobalt, one of the world’s leading battery raw material suppliers, establishing its first European factory in the country. The new facility, to be located in Ács, just a stone’s throw away from Audi’s manufacturing plant in Győr, marks a significant milestone in Hungary’s pursuit of becoming a prominent player in the EV revolution.
Hungarian Foreign Affairs and Trade Minister Péter Szijjártó revealed that Huayou Cobalt will invest approximately 520 billion forints (equivalent to around 1.4 billion euros) to construct a state-of-the-art cathode material factory in Ács. With an expected annual production capacity of 100,000 tonnes, the specifics regarding the factory’s construction timeline and completion date are yet to be disclosed.
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Huayou Cobalt’s decision to set up its European base in Hungary is testament to the country’s attractive investment conditions, particularly for Chinese companies. In recent years, Hungary has witnessed a surge in interest from various car manufacturers and battery cell producers, capitalizing on the nation’s favorable business environment. Notably, CATL and Eve Energy are in the process of constructing large battery cell factories in Debrecen, while BMW is currently building its inaugural electric vehicle plant in the same city, including battery assembly. Additionally, South Korean battery material manufacturer EcoPro BM commenced the construction of its factory in Debrecen in April.
The strategic selection of Ács by Huayou Cobalt positions the Chinese company in close proximity to Audi’s Győr plant. Audi, a prominent automotive player, is slated to commence production of fully electric vehicles at its Győr facility in the near future. There are strong indications that the electric compact model will be one of the key offerings. Currently, Audi’s Győr plant manufactures the A3, in addition to internal combustion and electric engines for the wider Audi Group. Furthermore, the plant is set to play a pivotal role in producing a new generation of electric drive systems for the MEB ECO platform, intended for Volkswagen Group’s electric small cars, starting from 2025.
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Audi Hungaria, located in Győr, presently produces approximately 100,000 units per year of the existing electric drive systems, including the asynchronous machines for the e-tron quattro, among other components. Recently, the plant also commenced production of e-drives for the Premium Platform Electric (PPE). Huayou Cobalt’s decision to establish its factory nearby further solidifies Hungary’s status as a prime destination for EV-related investments.
With Huayou Cobalt’s substantial investment and Hungary’s growing appeal to major players in the automotive and battery industries, the country is set to become a significant contributor to the global shift towards electric mobility. As Hungary continues to foster an ecosystem conducive to sustainable transportation, its position as a key player in the EV revolution becomes ever more prominent.
