Chinese Economy Watch

Europe could be self-sufficient in battery cells by 2026 – if gigafactories don’t get cancelled​

France, Germany and Hungary leading new battery developments

According to T&E, France, Germany and Hungary have made the most progress in securing gigafactory capacity since last year. In France, ACC, the joint venture between TotalEnergies, Stellantis and Mercedes-Benz, started operating its first gigafactory last May, with two others due to open their doors in Germany and Italy by 2026.

Another producer, Verkor, broke ground on its Dunkirk factory at the end of last year thanks to €659 million in support from the French government and up to €600 million from the European Investment Bank. The plant should start operations in 2025. And in Germany, Northvolt started the construction of its Schleswig-Holstein gigafactory in March 2024.

Hungary is set to be Europe’s number one battery cell producer by 2026 and has managed to secure more of its planned capacity over the past year – most of which is being developed by Asian companies.

“Across Europe, Finland, the UK, Norway and Spain, with projects by the Finnish Minerals Group, West Midlands Gigafactory, Freyr and Inobat, have the highest shares of capacity at high or medium risk,” adds T&E.


The U.S. and Europe Are Moving Toward Battery Self-Sufficiency​

December 16, 2022
Shareshare
 

CATL to begin battery cell production in Hungary's Debrecen​

(Xinhua) 08:17, November 22, 2024
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People visit the booth of CATL at the 2024 Beijing International Automotive Exhibition in Beijing, China, April 30, 2024. (Xinhua/Zhang Chenlin)

The new plant, with a planned annual capacity of 100 GWh, will be CATL's second battery manufacturing site in Europe.

DEBRECEN, Hungary, Nov. 21 (Xinhua) -- China's leading battery maker, Contemporary Amperex Technology Co., Ltd. (CATL), announced on Wednesday that it will start producing battery cells at its new facility in Hungary's second-largest city Debrecen next year.

The new plant, located in Debrecen's Southern Industrial Park, will be CATL's second battery manufacturing site in Europe, with a planned annual capacity of 100 GWh.

Jason Chen, general manager of CATL Europe Operations, highlighted the city's favorable location, robust infrastructure, and strong educational institutions as key factors behind the investment.

"Debrecen offers excellent conditions for us to continue building our production and supply chain network, thus supporting the European electrification process," Chen told reporters at a press event.

The main building of the plant is nearing completion, with mechanical and electrical installations underway. Earlier this year, the company also began module assembly in a leased facility near the construction site to meet growing client demand.

Chen underscored that the new plant would leverage advanced Industry 4.0 technology, featuring an optimized layout to minimize energy consumption while maintaining full production capacity.

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Jason Chen (C), general manager of CATL Europe Operations, speaks at a press conference in Debrecen, Hungary, on Nov. 20, 2024. (Photo by Attila Volgyi/Xinhua)

The company aims to achieve carbon neutrality across its core operations by 2025. CATL plans to replicate these efforts in Debrecen shortly after the plant becomes operational.

"CATL has always prioritized green manufacturing, not just in products but also in our processes," said Balazs Szilagyi, CATL's senior public affairs manager. He highlighted the company's local environmental initiatives, including financing the planting of 200 container trees and supporting regional greening projects.

As the factory nears its launch, CATL is actively recruiting and training local talent. The Debrecen team has grown to over 400 employees, and the company has introduced a dual-education program in partnership with the Debrecen Vocational Training Center, as well as collaborations with the University of Miskolc and the University of Debrecen.

"Our priority is to provide young people with an inspiring career path and continuous training opportunities," said Noemi Sidlo, CATL's communications and public relations manager. To this end, the company is establishing a dedicated training center to equip local workers with the latest industry skills.

Beyond workforce development, CATL has undertaken several corporate social responsibility (CSR) initiatives. These include contributions to the University of Debrecen's Pediatric Clinic and plans to support a children's home. The company has also engaged in community events, such as the Debrecen Drive and the Flower Carnival.

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Aerial photo taken on June 24, 2022 shows the building of the Contemporary Amperex Technology Co., Ltd. (CATL) in Ningde, southeast China's Fujian Province. (Xinhua/Lin Shanchuan)
 

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