CATL has started trial production of battery cells at its huge new factory in Debrecen, Hungary, marking another major step in the Chinese battery manufacturer’s expansion of its European production footprint.
The first two production lines are now operating on a trial basis, as CATL fine-tunes equipment and manufacturing processes ahead of full-scale series production. Once fully operational, the facility is planned to reach an annual production capacity of 100 GWh.
That would make the Debrecen plant CATL’s largest battery production base outside China and give European car manufacturers access to a major battery supply located much closer to their own factories.
CATL’s Hungarian factory could supply 1.4 million EVs
The planned 100 GWh capacity gives an indication of the scale of the project. If the entire output were used for electric cars with 70 kWh battery packs, it would theoretically be enough to supply batteries for approximately 1.4 million vehicles per year.
Actual vehicle volumes will depend on the battery capacities and applications of the models using cells produced at the plant, so the 1.4 million figure should be considered a theoretical calculation rather than CATL’s production forecast.
| CATL Debrecen | Details |
|---|---|
| Location | Debrecen, Hungary |
| Site area | 221 hectares |
| Planned annual capacity | 100 GWh |
| Investment announced | €7.34 billion |
| Cell production | Trial production started in September 2026 |
| Battery modules produced | More than 537,000 since autumn 2024 |
Battery production moves closer to European car factories
The location of the factory is significant. The 221-hectare site in Debrecen is surrounded by a growing automotive manufacturing cluster, with major facilities operated by companies including BMW, Mercedes-Benz, Volkswagen and Stellantis within relatively close proximity.
CATL originally announced an investment of €7.34 billion in the Hungarian project, equivalent to several billion euros and making it one of the largest battery manufacturing investments in Europe.
Mercedes-Benz was identified as the first major customer for the plant’s initial production capacity. The cells are expected to be used in upcoming electric Mercedes models.
BMW is already building electric cars in Debrecen
BMW also has a multi-year agreement with CATL covering the 46 mm cylindrical battery cells used in the Neue Klasse generation of electric vehicles.
CATL has previously stated that up to 20 GWh of annual capacity at a European plant could be dedicated to BMW.
The connection between CATL and BMW is particularly interesting because BMW is already producing the new iX3 in Debrecen. The automaker is also assembling high-voltage battery systems close to the vehicle production line.
This creates the potential for a relatively short supply chain between battery cell production and finished electric vehicles, reducing the distance components need to travel before reaching the final assembly line.
What does local battery production mean for European EVs?
Producing batteries in Europe does not automatically mean that electric cars will become cheaper. However, local production can reduce transportation requirements and inventory needs while making automakers less dependent on long supply chains connecting European factories with suppliers in Asia.
This is particularly relevant because the battery remains one of the most expensive components in an electric vehicle.
For European automakers, having large-scale cell production closer to their vehicle plants can also provide greater flexibility when managing supply, production planning and logistics.
CATL remains China’s dominant battery manufacturer
Although the batteries will be produced in Europe, the company behind the factory remains Chinese. CATL is also the world’s largest manufacturer of batteries for electric and electrified vehicles.
According to the latest figures from SNE Research cited in the original report, CATL accounted for 39.9% of the global market for batteries installed in electrified vehicles between January and July 2026.
That means CATL supplied almost four out of every ten kilowatt-hours installed in electrified vehicles globally during that period.
The Debrecen project therefore represents more than simply a new European battery factory. It also strengthens CATL’s position within the European automotive supply chain, allowing the company to produce a significant share of its batteries closer to the manufacturers that will use them.
More than 537,000 battery modules already produced
While cell production has only now entered the trial phase, the Debrecen facility has already been producing battery modules.
CATL says that more than 537,000 battery modules have been assembled at the site since production started in autumn 2024.
The distinction is important: module assembly was already underway before the start of trial production of battery cells. The latest development therefore represents a further step towards establishing a complete battery manufacturing operation at the Hungarian site.
When will CATL’s Debrecen factory reach full production?
Construction of the first cell production facility began in summer 2023, while production equipment was installed during spring 2026.
Following the necessary regulatory approvals and environmental permits, CATL started trial operation of the first two cell production lines on September 22, 2026.
CATL has not yet announced when regular series production will begin or how quickly the factory will ramp up towards its planned 100 GWh annual capacity.
Once fully operational, however, the Debrecen facility will give CATL a substantial manufacturing base in the heart of Europe’s automotive industry, while bringing battery cell production significantly closer to several major European vehicle factories.
