CATL, the prominent Chinese electric vehicle (EV) battery manufacturer, is currently in talks to establish battery recycling facilities in Europe as part of its strategic expansion plans. According to a report by Bloomberg, the move comes in preparation for battery cell production at the company’s upcoming plant in Debrecen, Hungary, which is scheduled to commence operations in late 2025.
Jason Chen, CATL’s regional head for Europe, revealed that discussions are underway with European governments, including Hungary, to identify potential locations for the recycling facilities. The objective is to manage recycling operations locally to support CATL’s manufacturing processes in Europe.
Aside from recycling, CATL is also engaging in early conversations with regional suppliers to secure raw materials within Europe. The recycling project may involve partnerships with existing local companies or CATL’s subsidiary, Guangdong Brunp Recycling Technology Co., as per reports.
The upcoming plant in Hungary represents CATL’s significant investment in Europe, with the facility’s initial phase expected to produce 40 GWh of battery capacity annually, with plans for expansion to 100 GWh. The project is estimated to create employment opportunities for up to 3,000 workers, with a preference for local hires.
While formal agreements for the recycling operations have not been finalized, CATL’s plans align with the increasing regulatory focus in Europe on battery sustainability and the localization of supply chains.
Addressing concerns about the shift to electric vehicles, Chen expressed confidence in the transition despite certain automakers, such as Volkswagen and Mercedes-Benz, adjusting their electrification targets. He emphasized that electrification is an irreversible trend, emphasizing CATL’s diversified customer base.
CATL’s key clients include Tesla, Volkswagen, Nio, Xpeng, Toyota, and Honda. In October, CATL’s market share in China reached 42.8%, with 25.32 GWh of EV batteries installed, marking a 50.9% increase from the previous year, according to data from China EV DataTracker.
