China’s CATL on Friday said it would build a EUR 7.3 billion (about Rs 59,600) battery plant in Hungary, Europe’s largest by far, as the world’s largest maker of electric vehicle batteries developed to meet growing demand from global automakers.
CATL said construction of the 100 GWh (gigawatt hour) plant in the eastern city of Debrecen, the largest investment abroad, will begin this year after receiving approval and will last no more than 64 months.
Once built, it is considered the largest battery factory in Europe and the second CATL in the region, producing batteries and modules for car manufacturers including Mercedes-Benz, BMW, Stellantis and Volkswagen .
The expansion comes as European carmakers accelerate the transition to electric vehicles in their home markets, driving up demand for batteries from local suppliers and making deals Supply must race to avoid production bottlenecks.
Volkswagen, Mercedes-Benz and Tesla have all announced or begun work on major battery expansion plans in Europe to ensure access to critical cells and materials and to support their electrification strategy. their.
CATL’s investment will mark “a giant leap in CATL’s global expansion,” company founder and president Zeng Yuqun said in a statement.
The Chinese company is also pushing ahead with plans to make batteries in North America by 2026 for customers including Ford Motor, Reuters reported earlier, despite tensions between Beijing and Washington.
The investment is also key for Hungary, which is becoming a major European hub for electric vehicle and battery production.
Debrecen is home to a factory being built by BMW, while Volkswagen’s Audi brand has a plant in Gyor, western Hungary, and Mercedes-Benz operates a plant in Kecskemet, central part of the country.
BMW declined to comment but said it plans to release some information regarding the battery in early September. VW and Stellantis did not immediately respond to requests for comment.
In a separate statement, Mercedes-Benz said it will be the first partner to receive battery cells from the Hungarian CATL factory, and that their order marks the highest initial order volume for the site.
Markus Schaefer, member of the Mercedes-Benz board of directors, said: “This state-of-the-art CATL plant in Europe is another important milestone for the expansion of electric vehicle production between us and our partners. important effect.
CATL previously said it would start supplying cylinders to BMW from 2025 for its new range of electric vehicles.
The Chinese company also said that it is also considering the possibility of joining forces with local partners to set up production facilities for battery materials in Europe.
As of the end of 2021, CATL has an annual battery production capacity of 170.39 GWh, with a capacity of 140 GWh under construction. Previously, the company said it aimed to install a total capacity of 670 GWh annually by 2025.
© Thomson Reuters 2022
