There is not a week in which we do not talk about CATL’s capabilities as the world’s largest producer of batteries for electric cars. The Chinese giant does not take its foot off the accelerator. The company’s plans contemplate the expansion of its activities to new continents. Europe will receive the largest investment in foreign land of the company: CATL plans to build a large battery factory in Hungary to quickly supply its European trading partners.
Surely you remember that not long ago, just a few days ago, we informed you about a new CATL plant in Mexico. Contemporary Amperex Technology Co, better known as CATL, knows the importance of diverting production to new locations that are closer to its buyers. In a few years, the expansion of the electric range in all brands will increase the rate of battery production. That is why the company needs not only to expand its cell manufacturing capacity, but also to bring them closer to the final station of the assembly line.
The main recipients of the new plant in Hungary will be Mercedes and BMW. The Germans, with a low capacity to manufacture their own cells, need the collaboration of other partners. BMW and Mercedes will not be the only ones to receive the nearby batteries for their electric cars, as Volkswagen and the many brands of the Stellantis Group they will also see reduced lead times for the batteries needed for their ever-increasing electric fleet. A strategic plan that CATL has established for the year 2035, when Europe requires the exclusive sale of electric cars.
As for the new facilities, CATL has reported that the plans include building the largest battery factory in Europe. Located in the city of Debrecen, Hungary, is close to other vital production centers such as the Hungarian Mercedes plant in Kecskemet. Even closer is the BMW plant in Debrecen itself. It is expected that it will begin to produce electric cars from 2025. A reference center as it is the first ecological plant of the group, without any dependence on fossil fuels.
The estimated total investment is around 7,300 million euros and will have a production capacity of 100 GWh. Although there are no specific dates, the deadlines estimate that once all the permits have been received from the local and state authorities, the factory could start producing the first cells within 64 months, which means that it would be fully operational from of 2027. This is a very important milestone for the company, as its founder and president, Zeng Yuqun, commented in a statement: “it represents a great leap in the global expansion of CATL”.
We have recently been able to learn that the CATL battery company has established itself, once again, as the great dominator of the industry. The results obtained during the first semester of the year establish a market share of 34.8%, which means expanding the advantage with its closest rival, BYD, which must settle for a share of 14.4%. Nothing indicates that the gap is going to be narrowed soon, since CATL has reported on the new technologies on which it is working. Like the mysterious new M3P batteries or the new generation of ultra-fast charging batteries.