CATL Starts Battery Module Assembly at Its Debrecen Plant in Hungary

Chinese battery giant CATL is stepping up its European production. According to industry reports, the company has started assembling battery modules in a new building at its facility in Debrecen, Hungary. Test assembly of battery cells is expected to begin there soon, but it still requires final approvals.

The project was first announced in August 2022. CATL plans to produce both battery cells and modules in Debrecen for European automakers. The total investment is set at €7.34 billion across several phases. Mercedes-Benz was named the first customer, while BMW could also source batteries from the site. BMW is building its own plant in Debrecen, where it will manufacture the new electric iX3.

Currently, CATL is assembling battery modules in the new production area with an annual capacity of 5 GWh. The cells are still coming from other CATL facilities because local cell production in Debrecen hasn't started yet. The company says construction of the factory with an initial capacity of 40 GWh per year is complete and production equipment is installed. Plans call for a future increase to 100 GWh.

However, the project is moving slower than initially expected. As of December, CATL had hoped to begin series production in March or April, but now only a test phase is imminent. Experts say it could take weeks or even months to go from test to full production, meaning the project is already behind schedule. Still, this is an important step for Europe. The closer batteries are to Mercedes-Benz and BMW plants, the lower the logistics risks and the higher the localization level of electric vehicles.