Aerial photo taken on June 24, 2022 shows the building of Hyundai Amperex Technology Co., Ltd. (CATL) in Ningde City, southeastern Fujian Province, China. [Photo/Xinhua]
A major investment project by Chinese electric vehicle battery maker CATL is proceeding as planned, a Budapest-based company official said.
CATL (Contemporary Amperex Technology Co Ltd) announced that it will invest 7.6 billion euros ($8.2 billion) in Hungary in August 2022 to build a 100 gigawatt-hour battery factory in Debrecen, Hungary's second largest city.
The project will be located in the city's southern industrial park and will supply battery cells and modules to European EV manufacturers. This will be CATL's second battery factory in Europe, following the battery factory in Erfurt, Thuringia, Germany, which began production in December 2022.
CATL Hungary's communications manager Noemi Szydro said the main structure of the factory has been constructed.
“Everything is on schedule and production is expected to begin in 2025,” he said, adding that the factory will be equipped with CATL's cutting-edge technology.
CATL launched a recruitment campaign in February focused on local recruitment. Of the more than 100 employees hired so far, about 80% are local employees.
CATL is expected to become one of the region's largest employers once production begins in earnest. According to Balázs Siraj, CATL Hungary's communications manager, the project's first phase will employ 3,000 people by 2026, but once all three phases are completed, the total number of employees will be 8,000 and even 9,000. It is said that it is possible to reach. He added that this would be a gradual process depending on market demand.
Sidlo said the recruitment drive is also a brand-building campaign for CATL, as CATL is integrated into the local community by participating in local events.
She said that the cooperation between CATL and the Hungarian local government is very good.
“Internally, we are learning from each other, which is a good process and a positive thing,” she said, adding that the company is still building its culture and it will take time.
“And we believe this will be a long-term success story in Hungary,” she said.
Mr Szydlo said local employees have been very successful in helping the company navigate Hungary's strict rules and regulations.
The Hungarian plant will be part of CATL's global network, as German car companies such as Mercedes-Benz and BMW, which have long been based in Hungary, have switched to EV production and become CATL's main customers.
Mr. Szydro said that CATL is also important from a Hungarian perspective, as it not only introduces the latest technology and expertise to Hungary, but also represents a significant source of revenue and job creation.
“At this point, we have started localizing our supply chain,” Siraj said.
CATL Europe CEO Jason Chen said at the Hungarian Battery Day event in October that CATL aims to build a complete European battery manufacturing value chain with a focus on sustainability. Stated.
He said that CATL is proud to have achieved carbon neutrality in four of its battery factories, which is also the goal for the Debrecen factory.
“With our plant in Hungary, we will be able to efficiently respond to the needs of the European market, develop our manufacturing network and contribute to the widespread adoption of electric transport and the success of the energy transition in Europe,” he said. .
In January, the Hungarian government announced a 700 billion forint ($2 billion) infrastructure development project to transform Debrecen into one of Europe's largest EV battery production hubs.
