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CATL to Begin Production at $8.5B Hungarian Battery Plant by Early 2026

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CATL, the world’s largest electric vehicle battery maker, expects to begin production at its new €7.3 billion ($8.55 billion) plant in Debrecen, Hungary by early 2026, according to its Europe general manager Matt Shen. The timeline marks a slight delay from initial plans to start operations by the end of 2025.

The Debrecen facility will become CATL’s largest European site, with an annual capacity of 100 GWh—enough to power millions of EVs—and a workforce of about 9,000 people. It will significantly overshadow the company’s existing factory in Thuringia, Germany, and supply automakers including BMW, Stellantis, and Volkswagen.

Shen told Reuters that production is now targeted to start “at the end of this year or beginning of the next year, so the next four, five months.” CATL is among several Chinese battery giants presenting at the IAA Mobility show in Munich, as European carmakers face growing pressure from Chinese competition in the EV transition.

Despite signs of sluggish EV demand in Europe, CATL remains bullish. The company increased its global market share to 38% in 2024, up from 36% the previous year, according to SNE Research. It also raised $4.6 billion in a Hong Kong listing in May to help finance the Hungarian project.

“There are always some fluctuations,” Shen said. “For the overall trend, there is no doubt about that.”

CATL Reports Slowest Profit Growth in Six Years Amid Price War in China’s EV Market

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Contemporary Amperex Technology Co. Ltd. (CATL), China’s leading electric vehicle (EV) battery manufacturer, has reported a 15% increase in net profit for 2024, marking its slowest growth in six years. The company’s net profit reached 50.7 billion yuan ($7.01 billion), falling short of its projected growth range of 11.1%-20.1%. Meanwhile, revenue decreased by 9.7%, marking its first revenue decline since it began releasing operating figures in 2015.

CATL attributed the revenue drop to declining battery prices prompted by a price war in China’s EV market, which pressured EV makers to reduce component costs. Despite rising sales volumes, lower prices of raw materials like lithium carbonate resulted in a fall in operating income.

For the fourth quarter, CATL reported a 13.6% increase in net profit to 14.7 billion yuan, down from the 26% growth seen in the previous quarter. Revenue for Q4 shrank by 3.1% to 103 billion yuan, marking the fifth consecutive quarterly decline.

The price war in China’s EV market has forced CATL to adjust its battery prices to defend market share. However, the company benefitted from a 17.6% reduction in the cost of its power battery business, outpacing an 11.3% drop in revenue from this segment.

Globally, CATL solidified its position as the dominant player in the EV battery market, extending its market share to 38% in 2024, up from 36% in 2023, according to SNE Research. BYD followed with 15%, while LGES saw its share fall to 10% from 13%.

CATL experienced faster growth in the energy storage system battery market, which accounted for 22.4% of total shipments, up from 19.4% in 2023. The company has also expanded beyond batteries, unveiling a new EV chassis in December and seeking to enter the power grid sector.

Additionally, CATL is investing internationally, with a 7.3 billion euro battery plant in Hungary to supply automakers such as Mercedes-Benz and BMW, along with a jointly-owned battery plant with Stellantis in Spain. The company is also pursuing a listing in Hong Kong to raise funds for its Hungarian plant, aiming to secure at least $5 billion.

Central Europe Races Against Time as Floods Threaten More Areas

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Emergency crews and volunteers worked tirelessly through the night in the Polish city of Wroclaw, preparing defenses against looming floodwaters. As the region braces for the worst flooding in two decades, Hungary has also taken drastic measures, opening a dam to relieve pressure as Prime Minister Viktor Orban warned of a “crucial period” ahead.

The floods, which have wreaked havoc from Romania to Poland, have caused widespread destruction, inundating towns, destroying infrastructure, and submerging vehicles. The financial toll from the damage is expected to run into billions of dollars.

Polish Prime Minister Donald Tusk addressed the crisis in Wroclaw, noting the urgent need for updates from the hardest-hit areas, such as Lewin Brzeski, where residents waded through waist-high water or sought refuge on rooftops. Meanwhile, in Hungary, authorities opened a dam in the northwest to divert the Lajta river’s waters into emergency reservoirs, sacrificing agricultural land to protect urban centers like Mosonmagyarovar. The Danube River, swollen from heavy rains, is expected to crest in Budapest later this week, potentially reaching over 8.5 meters.

Prime Minister Orban emphasized the gravity of the situation across Central Europe, with many areas experiencing the severe effects of torrential rainfall. Drone footage from northern Hungary captured the village of Venek submerged under floodwaters, a stark reminder of the increasing threats posed by climate change.

In the Czech Republic, water levels have started to recede, though several rivers in southern Bohemia are still peaking. Cleanup efforts are underway in the worst-hit areas, including sections of the critical railway line between Prague and Ostrava, part of the Vienna-Warsaw route, which remains out of service.

Czech Finance Minister Zbynek Stanjura announced plans to amend the national budget to provide flood relief, estimating potential costs to be as high as $4 billion, although the full scope of the damage is still unclear.