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Due to the increasing demand for electric vehicles (EVs), it is expected that nearly 250 battery factories will be installed in the European continent in the next ten years, as reported by Buck Consultants International.
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Are China's battery plants a bright spot in Europe?
Total Chinese investment in Europe has dropped sharply in the last decade, but battery plants have been a bright spot. Instead of acquiring existing European companies, which can attract more regulatory scrutiny, large Chinese firms like CATL have built new facilities, often with the help of local government funds.
Which Chinese company is constructing a battery plant in Hungary?
In Debrecen, Hungary, Chinese company CATL is constructing a battery plant with a 7.3 billion euro investment. This facility, with a production capacity of 100 gigawatt-hours (GWh), began construction in 2022.
Could China's Power Battery Factory be repurposed?
The Chinese power battery giant is in discussions with European governments, including Hungary, about possible factory sites, Jason Chen, CATL's regional operations chief, said in an interview with Bloomberg. Establishing recycling operations would help CATL mitigate environmental concerns over battery production and disposal, the report noted.
Will CATL set up a battery recycling business in Europe?
CATL is in talks to set up a battery recycling business in Europe, discussing possible plant sites with European governments including Hungary, according to Bloomberg. (CATL Qilin Battery on display at the April 2024 Beijing auto show. Image credit: CnEVPost)
How many battery factories are there in Europe?
This, coupled with the ongoing competition with China, is why it is anticipated that around 250 battery factories will be established in Europe over the next ten years. By the end of last year, approximately 20 projects had been confirmed in European states such as France, Germany, Italy, and the United Kingdom.
When will Hungarian battery plant start production?
The Hungarian battery cell manufacturing plant is expected to start production in the second half of 2025, Bloomberg said in the report today, citing Chen. CATL is targeting an annual capacity of 40 GWh in the first phase, expanding to 100 GWh, enough to power more than 1 million vehicles, the report noted.