The largest foreign investment in Hungarian history:

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The biggest investment so far in the entire history of Hungary will be made in Debrecen, a city located less than 100 kilometers from the border with Romania. The Chinese company Contemporary Amperex Technology Co. Limited (CATL), the world’s largest battery manufacturer, will build its second factory in Europe in the Hungarian city, the investment amounting to approximately 3,000 billion forints, i.e. approximately 7.3 billion euros, according to the Hungarian news portal Autopro .huh.

Levente Magyar, Secretary of State in the Ministry of Foreign Affairs and Trade (KKM), announced the investment in a public statement to Hungarian media on Friday. According to him, the negotiations, which lasted more than two years, ended on Friday.

The Chinese factory will occupy an area of ​​221 hectares, and around 9,000 new jobs will be created. The total production capacity at the time of completion of the investment will be 100 GWh.

The project will be built within the Debrecen-Sud Industrial Park and will supply cells and battery modules to European car manufacturers. CATL’s clients include Mercedes, BMW, Stellantis and Volkswagen. The first supply contract of the future plant has already been signed with Mercedes, information confirmed by Markus Schäfer, member of the Board of Directors of Mercedes-Benz Group AG and technical director responsible for development and procurement.

CATL also operates a factory on European territory, in Germany.

The company also recently announced investments of 3 billion dollars in China, and in the future it aims to expand to the North American market, where it will choose between the US and Mexico for an investment of 5 billion dollars, The interest of the Chinese in America Nord is also justified by the fact that Elon Musk’s company, Tesla Motors, is among its clients.

He added that more details about the investment will be made public after approval by the Chinese company’s General Meeting of Shareholders.

Magyar also said that, depending on this approval, construction of the new industrial facilities could begin as early as this year.

“The Chinese investment will be implemented in the field of electric vehicle production. This also confirms that the government made the right decision when it announced the strategy of opening up to China and defined the electric vehicle industry as one of the main axes of Hungary’s economic development,” Levente Magyar said in the said statement.

According to a press release from the Chinese company, CATL will use electricity from renewable sources in Debrecen and will also consider the implementation of photovoltaic energy production projects in Hungary itself, in cooperation with local partners.

In order to build a sustainable and circular battery value chain, CATL also states that it is looking at the possibility of establishing battery raw material production units in Europe, together with local partners from several countries.