Contemporary Amperex Technology Co Ltd (CATL) is currently in discussions to establish a battery recycling business in Europe, with potential plant sites being explored in countries such as Hungary. This initiative is part of CATL’s efforts to address environmental concerns related to battery production and disposal.
According to a recent report by Bloomberg, Jason Chen, CATL’s regional operations chief, revealed that the company is in talks with European governments, including Hungary, to identify suitable locations for the recycling plant. By partnering with European companies and leveraging its own Guangdong Brunp Recycling Technology Co, CATL aims to enhance its sustainability efforts in the region.
CATL’s foray into battery recycling aligns with its existing presence in Europe, as evidenced by the establishment of a battery cell manufacturing plant in Hungary. With an investment of €7.34 billion and a planned capacity of 100 GWh, this facility is set to become CATL’s second production site in Europe, supplementing its existing plant in Germany. Scheduled to commence operations in the second half of 2025, the Hungarian plant is projected to achieve an annual capacity of 40 GWh initially, with plans for expansion to 100 GWh to support the growing demand for electric vehicles in the region.
The recycling of power batteries is crucial for reducing the environmental impact of electric vehicles, as these batteries contain non-renewable metallic elements that contribute to carbon emissions during the production process. CATL’s strategic partnership with Volvo Cars, aimed at promoting battery recycling and reducing the carbon footprint of electric vehicles, underscores the company’s commitment to sustainable practices. By recycling retired batteries and utilizing extracted materials to manufacture new batteries, CATL and Volvo are working towards a more circular approach to battery production and disposal.
In addition to its endeavors in Europe, CATL has also expressed interest in expanding its operations to the United States, contingent upon regulatory approvals. Chairman Zeng Yuqun recently indicated that CATL would consider establishing a manufacturing plant in the US if the regulatory environment becomes more favorable.
Overall, CATL’s proactive stance on battery recycling underscores its commitment to sustainability and environmental responsibility, as the company continues to play a pivotal role in driving the adoption of electric vehicles and advancing the transition towards a greener future.
