December 16, 2025: China battery giant CATL says it is set to launch its new cell factory in Hungary as a springboard to strengthen long-term European operations.

CATL told China’s state Xinhua news agency on December 4 that production from the plant in Debrecen, with an initial annual capacity of 40 GWh, is already “fully booked” by clients.

Cell production is to start in early 2026 after construction and installation of equipment is completed. CATL said it expects to employ 1,500 on site by the first quarter of 2026.

“Our Debrecen investment is a major step towards strengthening CATL’s European presence,” said Matt Shen, managing director of CATL Germany and Hungary.

“We are planning for the long term, bringing our most advanced and sustainable manufacturing technologies to Hungary.”

Shen said its European partners had been “eagerly awaiting” the project’s completion and the plant had been designed to meet strict European environmental standards. The company aims to achieve carbon-neutral certification for the facility within two years of launch.

CATL’s announcement came just days after China and Hungary held talks that could pave the way for developing partnerships in lithium battery recycling.

However, concerns persist that Europe risks becoming an assembly plant for Asian battery giants — some of which are receiving millions of euros in subsidies for projects that may breach the bloc’s own environmental rules.

A study released by European clean transport campaign group Transport & Environment, reported by Batteries International earlier this year, cast doubts on the benefits of European partnerships with Chinese and Korean battery majors.