CATL will open a giant EV battery factory in Hungary
Chinese battery manufacturer Contemporary Amperex Technology Co., Limited (CATL) has announced the location of its second European factory. This new investment will be built in Hungary, with the company allocating nearly EUR 7.5 billion for the project.
Location of the new CATL battery factory
On August 12, 2022, Contemporary Amperex Technology Co., Limited (CATL) officially announced an investment of EUR 7.34 billion to build a 100 GWh battery factory in Debrecen, eastern Hungary. This will be CATL’s second battery factory in Europe; the first is located in Germany.
The project spans 221 hectares in an industrial park in Debrecen and will supply cells and battery modules to European car manufacturers.
After receiving shareholder approval, construction of the first production lines will begin this year.
A mission to fulfill
The choice of Debrecen was strategic. CATL highlights that Debrecen is centrally located in Europe, near automotive plants of key customers like Mercedes-Benz, BMW, Stellantis, and Volkswagen. The proximity will allow the CATL plant to better meet the battery demand in the European market. Additionally, the manufacturer believes this location will enhance the development of its global production network and accelerate e-mobility and energy transformation in Europe.
Renewable energy will power the new factory
As part of its commitment to reducing the carbon footprint of battery production, CATL plans to use electricity from renewable energy sources. Additionally, it is considering developing photovoltaic projects with local partners in Hungary.
CATL is also exploring collaborations with Hungarian partners to establish plants for producing materials necessary for battery manufacturing.
There is no doubt that our facility in Debrecen will allow us to further increase our competitive advantage, better respond to the needs of our European customers and accelerate the transition to e-mobility in Europe.
Robin Zeng, founder and president of CATL
The Hungarian Minister of Foreign Affairs and Trade also commented on the investment. He noted that the CATL factory is the largest greenfield investment in Hungary’s history.
Both the global and European economies have recently faced enormous challenges. We in Hungary have a clear goal to be a local exception to the continental recession. The best tool to achieve this goal is to attract cutting-edge investments in the most revolutionary branch of the automotive industry, which is electromobility. We have recently become one of the leading battery production sites in the world, and with this huge investment we are further strengthening our position.
Péter Szijjártó, Hungarian Minister of Foreign Affairs and Trade
Production growth in Europe
According to the CATL website, the project was well received by the company’s European customers. Markus Schäfer, a member of the management board of Mercedes-Benz Group AG, said that the new CATL plant in Hungary represents another milestone in scaling up electric car production.
CATL is a technology leader that will provide us – as the first and largest recipient of the new factory’s initial production capacity – with top-class CO2-neutral battery cells for our next generation EV in Europe, thus implementing our local procurement approach.
Markus Schäfer
Sources:
CATL announces its second European battery plant in Hungary , catl.com