By Kate Yuan

(JW Insights) Mar 30 -- China’s battery giant CATL denied that the construction of its second European factory has been halted by Hungarian locals over environmental concerns on March 29, confirming the Hungarian factory is progressing as scheduled without any delays, Pandaily reported.

It was reported by JW Insights and other Chinese press that CATL announced in August 2022 plans to build a battery factory in Debrecen, eastern Hungary. It officially signed a pre-purchase agreement on the land for the project on September 5, 2022.

At the signing ceremony, Péter Szijjártó, Hungarian Minister of Foreign Affairs and Trade, said this was one of Europe’s five largest “greenfield investments” over the past decade and also Hungary’s largest new investment project in history.

The CATL's Hungary plant covers an area of 221 hectares in the Southern Industrial Park of Debrecen. The first building began construction in 2022 with a total investment of 7.34 billion euros ($7.96 billion), planning for a battery production capacity of up to 100 GWh.

CATL had previously built its first European factory in Germany which began production in January 2023.

As lithium-ion batteries continue shifting towards international markets, more Chinese companies are starting overseas production layouts including EVE Energy, Gotion Hi-Tech, Envision AESC, Farasis Energy, CALB, and SVOLT.

In addition, industrial companies such as SEMCORP, GEM, and Shenzhen Kedali Industry are also strengthening their proximity to major customers to ensure market competitiveness.

Going overseas is a trend for battery companies. While China’s power battery industry is embracing opportunities for overseas projects or exports, it also faces challenges such as policies, environment, and site selection when implementing these projects abroad, according to the Pandaily report.