A Chinese company is ready to invest 7.34 billion euros (regarding 7.6 billion US dollars) to build an automotive battery manufacturing plant in Hungary. This investment by Contemporary Amperex Technology Co., Limited (CATL) is the largest investment in the history of Hungary to date, according to the Hungarian Minister of Foreign Affairs and Trade, Peter Szijjarto.
“We are proud that CATL has decided to make the largest greenfield investment in the history of Hungary,” the minister said on his Facebook page on Friday.
In a statement, CATL said it would build the 100 GWh battery plant in Debrecen, eastern Hungary. This new plant will supply cells and modules to European car manufacturers.
Hungarian State Secretary for Foreign Affairs Levente Magyar said CATL, one of the world’s largest battery manufacturers, is setting up its second factory in Europe on nearly 221 hectares of land. CATL’s first plant in Europe is located in Germany.
Magyar also said Friday’s decision marked the conclusion of more than two years of negotiations.
CATL said it chose Debrecen because it is Hungary’s second largest city, and because it is located in the heart of Europe. This city is also close to the factories of some of CATL’s customers, such as Mercedes-Benz, BMW, Stellantis and Volkswagen.
The plant in Debrecen will allow CATL to better meet the demand for batteries in the European market, improve its global production network, and help accelerate electromobility and the energy transition in Europe, the company said. Chinese.
In order to reduce its carbon footprint, CATL will use electricity generated from renewable energies, and also plans to develop solar energy with its local partners in this country.
The construction of this new factory should begin this year.
