MUNICH (Reuters) -Chinese battery maker CATL’s new plant in Hungary is expected to start production by early next year, its general manager for Europe said on Sunday, as the company looks to the region for growth.
CATL invested 7.3 billion euros ($8.55 billion) in the plant in the eastern city of Debrecen, seeking to expand battery production in Europe for automakers such as BMW, Stellantis and Volkswagen.
The new site would dwarf CATL’s existing European battery production facility in the German state of Thuringia, with a planned annual production capacity of 100 gigawatt-hours and a 9,000-strong workforce.
CATL’s general manager for Europe Matt Shen told Reuters the current goal was to start production at Decrecen “at the end of this year or beginning of the next year, so the next four, five months”.
The company had initially hoped to launch production by the end of 2025.
CATL is one of many Chinese players attending this year’s IAA Mobility car show in Munich, which officially kicks off on Tuesday, as European carmakers struggle to keep up in the shift to electric vehicles.
CATL has been extending its lead in the EV battery market, with a 38% share globally in 2024, up from 36% a year earlier, according to data from SNE Research.
The company raised $4.6 billion in its Hong Kong stock exchange debut in May, which helped fund the Hungarian project.
Shen shrugged off concerns about sluggish demand for EVs in Europe.
“There are always some fluctuations,” he said. “For the overall trend, there is no doubt about that.”
($1 = 0.8535 euros)
(Reporting by Rachel More; Editing by Susan Fenton)
