Chinese battery manufacturer EVE Energy has plans to build a battery production facility in Debrecen, Hungary, with an investment of approximately $1.18bn, reported Chinadaily.com.cn.
This plant will help supply German carmaker BMW’s facility in Hungary.
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The Debrecen facility will represent the latest foray for Chinese battery manufacturers into overseas markets.
Electric vehicle battery manufacturer Contemporary Amperex Technology announced its plan in 2022 to invest $8.04bn to build a battery facility with a capacity of 100GWh in Debrecen to supply to auto manufacturers.
EVE Energy signed an agreement to buy 45 hectares of land in the industrial zone in north-west Debrecen for the manufacturing of cylindrical batteries.
EVE Energy intends to invest around Ft400bn in the project while the Hungarian Government plans to support this facility with Ft14bn, reported Xinhua News Agency.
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By GlobalDataThis facility will meet the demand for new-generation cylindrical batteries from the BMW facility in Hungary.
According to data from the China Business Journal, a host of battery manufacturers, including CATL and Sunwoda Electronic among others, has reportedly set up facilities overseas.
The Chinese Academy of International Trade and Economic Cooperation’s senior researcher Zhou Mi attributed the expansion of China’s lithium battery producers into overseas markets to many factors, including an increase in production capacity and technological advancements in the manufacturing of lithium batteries.
Zhou said: “Chinese battery makers have distinct benefits in collaborating with related equipment manufacturers in both the upstream and downstream supply chain segments. They also enjoy an advantage in pricing due to their enhanced production capacity and volume, which also enables them to provide sustainable supply.”
