Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Focus on Electrification
August 12, 2022 06:26 AM

CATL to build $7.6B Hungary battery plant to supply Mercedes, BMW

The factory, which will be Europe's biggest battery plant, to date comes as European automakers accelerate a transition to electric vehicles.

Reuters
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Mercedes A Class Kecskemet Hungary 2018

    Mercedes A Class production in Kecskemet, Hungary.

    SHANGHAI -- China's CATL plans to build a 7.3 billion euro ($7.6 billion) battery plant in Hungary, as the world's biggest electric vehicle battery maker gears up to meet growing demand from global automakers.

    CATL said that construction of the 100 GWh (gigawatt hours) plant in the eastern Hungarian city of Debrecen, its biggest overseas investment, would start this year after receiving approvals, and should last no more than 64 months.

    Once built, it is set to be Europe's largest battery cell plant and CATL's second in the region after one in Germany, making battery cells and modules for carmakers including Mercedes-Benz, BMW, Stellantis and Volkswagen.

    The expansion comes as European automakers accelerate a transition to electric vehicles in their home markets, prompting surging demand for batteries from local suppliers and causing a run on supply deals to avoid production bottlenecks.

    VW, Mercedes-Benz and Tesla have all announced or started to implement major battery expansion plans in Europe to secure access to vital cells and raw materials and support their electrification strategies.

    CATL's investment will mark "a giant leap in CATL's global expansion," the company's founder and chairman Zeng Yuqun said in a statement on Friday.

    The Chinese company is also pressing ahead with plans for battery production in North America by 2026 for clients including Ford Motor, Reuters reported earlier, despite tensions between Beijing and Washington.

    The Hungary investment is also key for the eastern European country, which is becoming a major hub for electric vehicles and batteries in Europe.

    Debrecen is home to a plant being built by BMW, while Volkswagen's Audi brand has a factory in western Hungary's Gyor and Mercedes operates one in Kecskemet, in the central part of the country.

    BMW declined to comment but said it plans to release some battery related information in early September. VW and Stellantis did not immediately respond to requests for comment.

    Mercedes said in a separate statement it would be the first partner to receive battery cells from CATL's Hungarian plant, and tha its order marked the highest initial order volume for the site.

    "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," Mercedes-Benz management board member Markus Schaefer said.

    CATL previously said it would start supplying cylindrical cells to BMW from 2025 for its new series of electric vehicles.

    Related Article
    Stellantis passes Tesla, challenges VW for Europe EV lead
    FOCUS ON ELECTRIFICATION NEWSLETTER: A monthly wrap-up of the latest electric vehicle news, including interviews and global EV sales data, delivered to your inbox.
    RECOMMENDED FOR YOU
    Renault cedes power at Nissan for uncertain benefits
    Recommended for You
    Renault Nissan logos 2023
    Renault cedes power at Nissan for uncertain benefits
    BYD Han sedan
    BYD expects 2022 profit surge as sales jump
    Arrival has built test models and is due to launch production in 2022.r.
    EV startup Arrival slashes workforce; names new CEO
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us