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CATL to construct $7.6 billion 100 GWh battery manufacturing facility in Hungary

late final 12 months, CATL, the world’s largest battery producer, had an annual manufacturing capability of 170 GWh. It has plans to extend that to 670 GWh by 2025, in response to Reuters. A lot of that capability growth will come from a brand new $7.6 billion battery plant to be situated on 221 hectares (546 acres) within the Southern Industrial Park in Hungary’s metropolis of Debrecen. The venture will provide each cells and modules to European automotive producers, together with Mercedes, BMW, Volkswagen and Stellantis joint press launch by the corporate and officers in Hungary.

As a part of its dedication to scale back the carbon footprint of battery manufacturing, CATL will use electrical energy from renewable power sources and work with native companions to develop photo voltaic power and battery materials suppliers regionally and throughout Europe.

“There isn’t a doubt that our Debrecen plant will allow us to additional sharpen our aggressive benefit, higher serve our European clients and speed up the transition to e-mobility in Europe,” stated Dr. Robin Zeng, founder and president of CATL. “The greenfield venture in Hungary might be a quantum leap in CATL’s international growth, in addition to an vital step in our efforts to make an impressive contribution to the pursuit of inexperienced power for humanity.”

Hungary will grow to be a significant hub for electrical autos and batteries in Europe. Debrecen is house to a manufacturing facility being constructed by BMW, whereas Audi has a manufacturing facility in Gyor in western Hungary and Mercedes-Benz has a manufacturing facility in Kecskemet, within the central a part of the nation.

Convention venue in Hungary. Picture courtesy of CATL.

Péter Szijjártó, Hungarian Minister of Overseas Affairs and Commerce, added: “Each international and European economies have confronted monumental challenges of late. We in Hungary have a transparent aim of being an area exception to the continental recession. The perfect device to attain this aim is to draw state-of-the-art funding in probably the most revolutionary department of the automotive business, particularly electromobility. We’re proud that CATL has determined to make the biggest greenfield funding in Hungary’s historical past. We now have not too long ago grow to be one of many main battery manufacturing websites on this planet and with this huge funding we’re additional strengthening our place.”

Markus Schäfer, Chief Technical Officer of Mercedes, stated: “This new state-of-the-art European CATL plant in Hungary is one other milestone in scaling up our EV manufacturing along with our key companions. With CATL we have now a expertise chief as our companion to – as the primary and largest buyer of the brand new plant’s preliminary capability – to offer premium carbon impartial battery cells for our subsequent era EVs in Europe.We’re proud that our Ambition 2039 is supported by CATL’s dedication to CO2 -neutral manufacturing in Hungary.”

One query the press launch doesn’t reply is whether or not the battery cells produced on the new plant will use NMC or LFP chemical substances. A superb guess is that the right reply is “each”. BMW could desire NMC cells as they help larger ranges of efficiency, whereas Volkswagen could go for LFP batteries for fashions that compete immediately with Tesla, which is on the brink of new model of the Mannequin Y in-built Germany that can use BYD LFP Blade batteries.

What about CATL and North America?

This information begs the query, what plans does CATL have for brand spanking new vegetation in North America? The US simply handed a brand new legislation referred to as the Inflation Discount Act, which makes it abundantly clear that batteries and battery elements from China aren’t eligible for the EV tax credit included in that laws. Europe appears to be a lot much less involved with this.

We not too long ago reported that CATL was contemplating areas in Mexico and USA for a brand new North American manufacturing facility, however the outcry over Nancy Pelosi’s go to to Taiwan could have delayed a choice. Reuters studies {that a} supply with data of the scenario says that CATL has not modified its plan to start out native battery manufacturing for North America from 2026. The growth is predicted to deliver EV batteries to Ford, BMW and presumably different automakers, together with Tesla.

CATL plans to ship LFP Battery Cells to Ford for its second-generation F-150 Lightning electrical pickup, however there are not any studies of BMW utilizing LFP cells (but). It appears possible that CATL’s new vegetation will be capable of produce all of the battery cells its clients want to fulfill altering market demand and provide chain variables.


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