CATL to Invest 7.3 Billion Euros to Build Second European Battery Plant

China's Contemporary Amperex Technology Co., Limited (CATL) says it will invest 7.34 billion euros to build a 100 GWh battery plant in Debrecen in east Hungary. It will be the Chinese company's second battery plant in Europe following the opening of its German plant in the state of Thuringia.

Construction of the first production facilities will start later this year.

Covering an area of 221 hectares in the Southern Industrial Park of Debrecen, the project will supply both cells and modules to European automakers. 

The new facility will be in close proximity to some auto plants of CATL's customers such as Mercedes-Benz, BMW, Stellantis and Volkswagen.

As part of its commitment to reducing the carbon footprint in battery manufacturing, CATL will use electricity from renewable energies, and is considering developing solar power with local partners in the country. 

To build a sustainable and circular battery value chain, CATL is also examining the possibility of joining forces with local partners to establish facilities for battery materials in Europe. 

Mercedes-Benz Group will be the new plant's first customer.

Dr. Robin Zeng, founder and Chairman of CATL, says: “There is no doubt that our plant in Debrecen will enable us to further sharpen our competitive edge, better respond to our European customers, and accelerate the transition to e-mobility in Europe. The greenfield project in Hungary will be a giant leap in CATL’s global expansion, and also an important step in our efforts to make an outstanding contribution to the green energy drive for humankind.” 

Péter Szijjártó, Hungarian Minister of Foreign Affairs and Trade, adds: “Both the global and the European economies have been faced with tremendous challenges recently. We in Hungary have a clear goal to be a local exception from the continental recession. The best tool to achieve this goal is to attract state-of-the-art investments in the most revolutionary branch of the automotive industry, namely electromobility. We are proud that CATL decided to execute the biggest ever greenfield investment in the history of Hungary. We have recently become one of the leading battery production sites of the world and with this huge investment we further strengthen our position.”

Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG, CTO responsible for development and procurement, comments: “This new state-of-the art European CATL plant in Hungary is another milestone for the scale-up of our EV production together with our key partners. With CATL we have a technology-leader as our partner to provide us - as the first and biggest customer of the new plant’s initial capacity - with top-notch CO2 neutral battery cells for our next generation EVs in Europe, hence following our local-to-local approach in procurement. We’re proud to see our Ambition 2039 supported by CATL’s commitment to CO2 neutral production in Hungary.”

CATL is a Chinese battery manufacturer and technology company founded in 2011 that specialises in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems, as well as battery management systems