CATL to create $7.6B Hungary battery plant to source Mercedes, BMW

SHANGHAI — China’s CATL programs to build a 7.3 billion euro ($7.6 billion) battery plant in Hungary, as the world’s biggest electrical car battery maker gears up to meet up with growing demand from world automakers.

CATL stated that construction of the 100 GWh (gigawatt several hours) plant in the japanese Hungarian city of Debrecen, its most significant abroad financial investment, would get started this 12 months immediately after receiving approvals, and ought to past no extra than 64 months.

After developed, it is established to be Europe’s premier battery mobile plant and CATL’s second in the location right after one in Germany, earning battery cells and modules for carmakers like Mercedes-Benz, BMW, Stellantis and Volkswagen.

The growth arrives as European automakers speed up a changeover to electrical autos in their dwelling markets, prompting surging need for batteries from nearby suppliers and resulting in a run on supply discounts to stay clear of production bottlenecks.

VW, Mercedes-Benz and Tesla have all announced or begun to implement significant battery expansion designs in Europe to protected entry to crucial cells and raw supplies and support their electrification techniques.

CATL’s financial commitment will mark “a giant leap in CATL’s world enlargement,” the firm’s founder and chairman Zeng Yuqun mentioned in a assertion on Friday.

The Chinese firm is also pressing ahead with ideas for battery creation in North The united states by 2026 for shoppers including Ford Motor, Reuters reported earlier, in spite of tensions amongst Beijing and Washington.

The Hungary financial investment is also vital for the japanese European place, which is turning into a main hub for electric automobiles and batteries in Europe.

Debrecen is property to a plant currently being built by BMW, when Volkswagen’s Audi model has a manufacturing unit in western Hungary’s Gyor and Mercedes operates one in Kecskemet, in the central portion of the country.

BMW declined to comment but reported it programs to release some battery connected information and facts in early September. VW and Stellantis did not quickly answer to requests for remark.

Mercedes explained in a independent assertion it would be the initially spouse to obtain battery cells from CATL’s Hungarian plant, and tha its buy marked the optimum preliminary purchase volume for the web site.

“This new condition-of-the artwork European CATL plant in Hungary is an additional milestone for the scale-up of our EV production together with our key companions,” Mercedes-Benz management board member Markus Schaefer claimed.

CATL earlier said it would commence supplying cylindrical cells to BMW from 2025 for its new sequence of electrical automobiles.