What happened? Continuation of Hungary’s largest investment project suspended – UPDATE: CATL reaction
It has been reported by Hungarian news portal Telex on Thursday that the continuation of Hungary’s largest investment project, preparations for the second phase of CATL’s battery factory in Debrecen, have been suspended indefinitely.
The news portal has learnt that the decision was justified by market uncertainty resulting from Trump’s tariff threats, and that several people from the architectural team working on the design have been fired.
Largest investment project put on hold
Three years ago, in 2022, it was announced that the world’s largest battery manufacturer, the Chinese CATL would build a giant factory with a capacity of 100 gigawatt hours in Debrecen, at a cost of approximately HUF 3000 billion (EUR 7.5 billion).
Until recently, CATL was so positive about the market situation that, while the first phase was still under construction, it began preparations for the second phase. Archaeological excavations were carried out in the area concerned, and the design of the buildings was also underway, Telex wrote.
However, the portal has now learned that the company has changed its mind and suspended preparations for the construction of the second unit. It seems that the decision was prompted by the trade war launched by Trump and the resulting market uncertainty.
Telex asked CATL about the suspension of preparations for the second unit. The company wrote:
“In order to start production as soon as possible, we are currently focusing all our efforts on completing our first factory unit and launching production. A decision on the start of construction of the second production unit will be made after careful consideration, taking into account the latest innovations in battery technology and the needs of our customers.”
Municipal council: Debrecen remains ‘engine of economic growth’
Debrecen, Hungary’s second-biggest city, remains an “engine of economic growth” for the country, the municipal council said in a statement issued on Thursday.
Responding to press reports that China’s CATL has stopped construction of the second phase of its battery plant in the city, the municipal council said there was no need to revisit the city’s economic development plan as it was drafted, primarily, based on the impact of the first phase of construction which is moving ahead on schedule.
The council acknowledged that the uncertainty of global economic trends at present warranted caution. The council also affirmed its commitment to upgrading the city’s industrial infrastructure and using all resources at its disposal to support the completion of investments underway on schedule.
UPDATE: CATL not suspending second phase of plant construction
China’s CATL told MTI on Thursday that the rumours that it is suspending an investment for the construction of the second phase of its battery plant Debrecen (E Hungary) are untrue.
CATL said in a statement that CATL headquarters experts are currently reviewing the technology and investment schedule of the second battery factory with the aim of implementing the most advanced and energy-efficient solutions at their Hungarian site.
The company said that despite the review, the implementation of the second phase has never been questioned. In the meantime, the company is focusing on completing the first factory unit in Debrecen in order to start production as soon as possible.
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