CATL begins test production of battery cells in Debrecen
The Chinese battery giant CATL has begun trial production of battery cells at its new plant in Debrecen, Hungary. Delays had occurred on several occasions previously, forcing European automakers to source from China as alternatives. Additionally, political opposition has emerged recently.
Aerial view of the new CATL factory in Debrecen
Image: CATL
CATL has begun trial production at its new battery cell factory in Debrecen, Hungary. According to CATL, production can now start as all necessary conditions and regulatory requirements have been met. The testing phase aims to set up, optimize, and validate the production facilities and manufacturing processes before full-scale mass production begins. The first two production lines at the facility have been put into operation for these testing purposes.
The exact timeline for the start of mass production of battery cells in Debrecen remains unclear. Test production in new cell factories usually takes months rather than weeks. On the other hand, CATL is the world’s largest battery cell manufacturer with extensive experience. And CATL’s customers are waiting for these battery cells: According to media reports, Mercedes-Benz even had to suspend production of the electric GLC in Bremen last summer because CATL could not supply enough cells. The company had actually restructured its supply chain to temporarily supply cells from China for the GLC and VLE models.
CATL already operates a cell factory in Thuringia
CATL announced the plant in Debrecen in August 2022 as its second European cell factory, alongside the facility opened at the end of 2022 in Arnstadt, Thuringia. Investments of 7.34 billion euros were planned, with a production capacity of up to 100 GWh per year. This was intended to make the plant CATL’s largest outside of China. The Debrecen facility is set to supply cells locally produced not only to Mercedes-Benz but also to BMW, which operates its new electric vehicle factory in Debrecen as well as other European automakers. Construction of the first expansion phase began in 2023, but the originally expected start date for production was delayed several times; it was supposed to begin in spring 2026.
Additional challenges to the construction included approval and environmental issues. Environmental permits were contested by local residents and environmental organizations; experts criticized aspects such as water consumption, noise, and impacts on the water balance. This summer, illegal wastewater discharge and elevated nickel levels among workers also prompted regulatory action. Although battery module production on site has already begun, cell manufacturing remains delayed.
The project also operates in an increasingly critical political environment: Viktor Orbán’s government, which was ousted in April, had strongly supported Hungary’s development into a European battery hub and brought several Asian manufacturers to the country. After the change in government, the new leadership under Prime Minister Péter Magyar announced stricter environmental regulations and new oversight for the battery industry. However, there is currently no direct link between this shift in policy and the delays at CATL; CATL claims to have obtained the approvals required for the now-started trial operation and resolved the previously identified issues.