CATL sources battery components from China instead of Debrecen

CATL announced the construction of its battery factory in Debrecen as early as August 2022, where it plans to produce battery cells and modules for European automotive manufacturers. Following its plant in Arnstadt near Erfurt, Debrecen is CATL’s second battery cell factory in Europe. However, as Automobilwoche reports, the project is now behind its original schedule. CATL initially stated the investment volume at €7.34 billion euros, spread across several expansion phases. Mercedes-Benz was announced as the first major customer when the project was launched. Another confirmed customer is BMW, which manufactures the all-electric BMW iX3 just a few kilometres away. As recently as December, CATL had targeted March or April 2026 for the start of series production. In reality, however, no battery cells have yet been produced in Debrecen.

The consequences are already evident at Mercedes-Benz. The approximately 115kWh, ready-to-install battery packs for the new electric van VLE, whose production has now commenced in the Spanish city of Vitoria, were originally supposed to come from Debrecen. Vans CEO Thomas Klein confirmed to Automobilwoche that the supply is currently being sourced from China, with CATL covering the additional costs incurred. BMW, however, is not yet affected by the current delays. The supply of battery cells from Hungary to BMW’s Debrecen plant is only scheduled to begin in 2027. At present, deliveries are proceeding as planned from China, while BMW handles the assembly of the high-voltage batteries itself.

CATL awaits approvals for battery cell production

Despite the delays, CATL has taken another step forward in ramping up the plant. Production of battery modules with an annual capacity of 5 GWh has begun in a newly constructed hall. This capacity would theoretically be sufficient to equip around 50,000 electric cars with a 100kWh battery or approximately 125,000 small cars with a 40kWh battery. However, the required battery cells continue to be sourced from other CATL plants. According to company statements, the cell factory, initially planned with an annual capacity of 40GWh, is already completed. However, necessary approvals are still pending. Once the outstanding permits are secured, CATL plans to commence test production of battery cells. In the long term, the site’s capacity is set to expand to up to 100 GWh.

Meanwhile, CATL has been producing battery modules in Debrecen since autumn 2024. At that time, the company started production in a leased hall with two production lines. With the newly launched production on its own site, CATL is further expanding its local manufacturing capacities.

The delays are reportedly due to pending official approvals and stricter environmental regulations, particularly in the context of Hungary’s change in government. The plant attracted additional attention in early May when a green liquid leaked, prompting investigations by environmental authorities. CATL subsequently explained that the substance was merely a colouring agent used in routine leak tests.

automobilwoche.de (DE)