New Delhi, India| September 8, 2025- CATL’s battery manufacturing facility in Hungary is now expected to begin production by early 2026, according to European executives. While the company had originally targeted late 2025 for the launch, updated timelines indicate that operations will begin within the following five months. Matt Shen, General Manager for CATL Europe, confirmed this revised schedule during the IAA Mobility car show in Munich. He stated that the company is fully prepared to serve Europe’s growing electric vehicle battery needs.
Although the shift in timeline represents a minor delay, it reflects careful planning rather than setbacks. CATL continues to push forward aggressively with its European expansion, aligning production with increasing EV demand. The Debrecen-based factory marks a critical part of that strategy and reinforces CATL’s long-term vision for the region. Moreover, the scale of the investment reflects the company’s deep commitment to becoming a central supplier for European automakers.
The €7.3 billion facility will supply major automotive brands including BMW, Stellantis, and Volkswagen. By securing dependable access to advanced batteries, these companies can accelerate their shift to electric mobility. As demand for electric vehicles grows, reliable battery production becomes not just beneficial but essential. CATL’s presence in Hungary will ease supply chain pressures and enable faster, more efficient vehicle production across Europe.
In terms of output, the Debrecen plant will be far larger than CATL’s existing Thuringia facility in Germany. Once operational, it will produce up to 100 gigawatt-hours of batteries annually. This level of production will not only meet domestic demand but will also serve manufacturers throughout the continent. The increase in capacity marks a significant step in Europe’s efforts to localize key components of the EV supply chain.
Employment will be another major benefit of this development. Around 9,000 new jobs are expected to be created at the site, including roles in manufacturing, engineering, logistics, and support services. This influx of employment opportunities will contribute to Hungary’s economic development while also supporting innovation and technical advancement. Furthermore, related sectors are likely to grow, stimulated by the demand for local suppliers and infrastructure services.
CATL’s ongoing growth is underscored by its global market performance. According to SNE Research, the company held a 38% share of the global EV battery market in 2024, rising from 36% the year before. These gains suggest that CATL remains highly adaptive to changing market conditions and continues to lead in both scale and technology. Its global strategy has proven resilient despite fluctuating demand in some regions.
Earlier in 2025, CATL raised $4.6 billion through its initial offering on the Hong Kong Stock Exchange. The capital raised was instrumental in funding new projects, including the Hungarian plant. With ample financial resources and strong investor confidence, CATL is well-positioned to execute its international expansion plans. The company’s actions reflect a clear understanding of long-term global energy trends.
Some concerns remain about slower-than-expected EV adoption in certain European markets. Nevertheless, Shen expressed optimism, noting that short-term variations do not alter the overall trajectory. According to him, the transition to electric transportation is continuing, driven by policy, innovation, and consumer demand. The company maintains that clean energy technologies will remain central to future mobility systems.
CATL’s participation in the IAA Mobility event also highlighted its increasing role in European automotive discussions. The show attracted global industry leaders and innovators, offering a platform to discuss the direction of transportation. CATL’s involvement demonstrated both confidence and commitment to shaping Europe’s electric future. It was also an opportunity to showcase collaboration with local and international partners.
Sustainability remains a core focus of CATL’s operations. By manufacturing batteries within Europe, the company helps reduce transportation-related emissions and enhances supply chain efficiency. These advantages directly support the European Union’s broader climate goals, particularly in reducing carbon emissions from transport and manufacturing. CATL’s presence in Hungary aligns with these priorities in a tangible, scalable way.
For automakers, the benefits are clear. A steady, high-quality battery supply helps meet regulatory targets while also supporting innovation. By partnering with CATL, manufacturers can scale their EV production without sacrificing performance or reliability. These collaborations are becoming increasingly important as new models and stricter emission standards enter the market.
The decision to build in Hungary reflects a strategic shift in global battery production. While Asia has long dominated the supply chain, companies like CATL are investing heavily in Europe to diversify operations. This reduces geopolitical risk while ensuring closer proximity to key customers. As a result, CATL strengthens its role as a cornerstone of the EV ecosystem, both in Europe and globally.
In conclusion, CATL’s Hungarian battery plant is on track to begin operations slightly later than planned but remains a pivotal project. It will bring economic growth to Hungary, support Europe’s clean energy goals, and supply essential components for the continent’s EV future. With its bold investment and strategic positioning, CATL continues to power the shift toward sustainable mobility.
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