Chinese battery maker CATL has announced plans to invest nearly CNY 50 billion (€7.2 billion) in the construction of a 100 GWh battery plant in Debrecen, Hungary, in what will be the country's largest ever overseas investment.
CATL. Credit: askarim / Shutterstock
Credit: askarim / Shutterstock
If the project receives shareholder approval, construction is set to begin later this year and should last no more than 64 months.
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The planned facility covers an area of 221 hectares in the Southern Industrial Park of Debrecen, and would be Europe's largest battery cell plant. The facility will be CATL's second plant in Europe, after its Thuringia, Germany plant.
CATL is keen to capitalise on Europe's energy transition to meet increasing demands from global automakers. It will supply cells and modules to European car manufacturers, such as Mercedes-Benz, BMW, Stellantis, and Volkswagen. Mercedes-Benz has said that it is the first and biggest customer of the new plant's initial capacity.
CATL has made a commitment to reducing its carbon footprint in battery production by using electricity from renewable energy. To build a sustainable and circular battery value chain, it is also looking at the possibility of collaborations with local partners and stakeholders to set up facilities for battery materials in Europe.
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"CATL's investment will mark a giant leap in CATL's global expansion," said Robin Zhang, founder and chairman of CATL.
"Our battery plant in Debrecen will enable us to sharpen our competitive advantages further. We can better respond to our European customers' needs and accelerate the transition to e-mobility in Europe."
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