A screen shows the logo of the Contemporary Amperex Technology (CATL) during the listing ceremony at the Hong Kong Stock Exchange in Hong Kong, China, May 20, 2025.

Chinese battery manufacturer CATL (300750.SZ) is preparing to begin production at its new plant in Debrecen, Hungary, by early next year, according to its general manager for Europe, Matt Shen. The announcement was made on Sunday as the company continues to expand in Europe to meet growing demand from automakers.

The plant represents a major investment, with CATL committing 7.3 billion euros ($8.55 billion) to the project. It will support European carmakers such as BMW (BMWG.DE), Stellantis (STLAM.MI), and Volkswagen (VOWG.DE). The Debrecen facility is designed to surpass CATL’s existing European production site in Thuringia, Germany, with an annual capacity of 100 gigawatt-hours and a workforce of 9,000.

Shen told Reuters that the company’s target is to start production “at the end of this year or beginning of the next year, so the next four, five months.” Originally, CATL aimed to commence production by the end of 2025, but the timeline has been accelerated.

The company is also participating in this year’s IAA Mobility car show in Munich, which begins Tuesday. The event comes as European automakers continue to navigate challenges in the transition to electric vehicles, while Chinese battery producers, including CATL, seek greater market opportunities in the region.

Globally, CATL has continued to strengthen its position in the EV battery sector. Data from SNE Research shows the company held a 38% market share in 2024, compared with 36% the previous year. Its growth underscores its leadership in supplying key battery technologies to the automotive industry.

In May, CATL raised $4.6 billion through its Hong Kong stock exchange debut, providing financial support for its Hungarian project and other expansion plans.

Addressing questions about slower EV sales in parts of Europe, Shen noted the broader market outlook remains positive: “There are always some fluctuations. For the overall trend, there is no doubt about that.”

CATL’s move in Hungary reflects both its response to European demand and its strategic commitment to support global automakers with localized production. The plant is expected to play a central role in scaling up electric vehicle supply chains in the region.

by Reuters