The new factory of the Chinese battery manufacturer in Debrecen will be a priority investment for the national economy
The construction of the planned battery factory of the Chinese CTLA in Debrecen has become a priority investment for the national economy – it was revealed in the report published on Thursday evening From the Hungarian Gazette. The government decree precisely designated the location of the investment, the Southern Industrial Park in Debrecen.
Already in June, news broke that the world’s largest battery company would establish another European factory after Germany, and on Friday the State Secretary of the Ministry of Foreign Affairs announced that a factory with a capacity of 100 gigawatt hours would be built on 221 hectares.
The investment will cost the Chinese company 7.34 billion euros, i.e. approximately HUF 300 billion, but the government is also involved in the infrastructure development: the Thursday Evening Gazette according to another decree, nearly HUF 88 billion will be regrouped for the expansion of the electricity network of the Southern Industrial Park in Debrecen.
Breaking down this 88 billion forints over five years, the government would use it for development, but already this year the Ministry of Finance should transfer 6.8 billion forints to the project in the budget.
According to the government decree, four actors can carry out investments from the HUF 88 billion budget resources:
- MAVIR Zrt., which operates the Hungarian electricity system,
- Opus Titász Zrt., owned by Lőrinc Mészáros,
- the state-owned MVM Démász Zrt.
- and the municipality of Debrecen.
Although the government proudly reported on the new investment and the municipality sees great potential in the Chinese company’s investment, the local opposition fears that the industrial park’s water use will endanger the population’s water needs. On Thursday, the issue of CATL was also a topic at the city assembly, where mayor László Papp said that a battery factory employing 9,000 people is expected to be built in several stages over many years.
It cannot be a coincidence that a new plant is being established in Debrecen: as we wrote earlier, CATL will supply a new type of battery cells in cylindrical format to BMW’s new generation electric cars from 2025. Thus, it can be assumed that the Chinese battery manufacturer will install this battery next to the BMW factory in Debrecen.