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Released January 31, 2023 | GALWAY, IRELAND
en
Written by Martin Lynch, European News
Editor for Industrial Info (Galway, Ireland)--Hungary is on track to become Europe's largest producer of batteries for electric vehicles (EVs) by the end of the decade.
Industrial Info is tracking new gigafactory and expansion plant projects from leading companies, including Korea's SK Innovation Company Limited (Seoul, South Korea), German auto giant BMW (Munich, Germany) and Contemporary Amperex Technology Company Limited (CATL) (Ningde, China), the world's largest battery manufacturer. Hungary's battery capacity is set to grow sevenfold to reach 207 gigawatt hours (GWh) by the end of 2031, up from 27.5 GWh in 2021, according to Benchmark Gigafactory Assessment. More than 175 GWh, or 86%, of this capacity is set to come from Tier 1 battery producers, more than any other country in Europe. Benchmark said Tier 1 battery makers are classed as those that supply more than one multinational electric vehicle producer outside of China and have more than 10 GWh of annual production capacity.
Industrial Info is tracking 17 battery-related projects in Hungary with an estimated investment value of almost US$10 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the report.
"Hungary offers a source of cheaper labor and land cost when compared with Western Europe," explained Evan Hartley, an analyst with Benchmark. "Moreover, the country is well positioned to serve both automaker and EV consumer bases. Eastern European cell capacity is likely to get a further boost as cost is one of the key reasons for many Asian suppliers when deciding where to base operations. Despite aggressive investment plans in Germany, there is still focus on Hungary and Eastern Europe with upstream cathode producers, and downstream EV automakers investing in the country."
CATL is building a 100-GWh battery plant at Debrecen to supply its European customers, including Mercedes-Benz (Stuttgart, Germany) and BMW. Also at Debrecen, BMW is pushing forward with a US$1 billion project to build a high-voltage battery assembly unit to serve the production needs of the full EV vehicles that will be produced there at a manufacturing plant currently under construction. SK Innovation is constructing a 30-GWh battery plant at Iváncsa in the Közép-Dunántúl region. It will be almost double the size of its two Komorom-located battery plants combined and will produce enough batteries for roughly 430,000 EVs per year. South Korean chemicals company EcoPro BM, the world's second-largest cathode producer, is spending US$500 million on the first phase of a cathode material plant, also at Debrecen. It will be commissioned next year and by 2026 it will account for a quarter of Europe's cathode production capacity.
Hartley said Hungary's attractive subsidies have helped lure leading battery making companies. "The Hungarian government has also historically provided subsidies to cell producers, with SKI receiving around US$227 million for the 30-GWh Iváncsa plant."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Industrial Info is tracking new gigafactory and expansion plant projects from leading companies, including Korea's SK Innovation Company Limited (Seoul, South Korea), German auto giant BMW (Munich, Germany) and Contemporary Amperex Technology Company Limited (CATL) (Ningde, China), the world's largest battery manufacturer. Hungary's battery capacity is set to grow sevenfold to reach 207 gigawatt hours (GWh) by the end of 2031, up from 27.5 GWh in 2021, according to Benchmark Gigafactory Assessment. More than 175 GWh, or 86%, of this capacity is set to come from Tier 1 battery producers, more than any other country in Europe. Benchmark said Tier 1 battery makers are classed as those that supply more than one multinational electric vehicle producer outside of China and have more than 10 GWh of annual production capacity.
Industrial Info is tracking 17 battery-related projects in Hungary with an estimated investment value of almost US$10 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the report.
"Hungary offers a source of cheaper labor and land cost when compared with Western Europe," explained Evan Hartley, an analyst with Benchmark. "Moreover, the country is well positioned to serve both automaker and EV consumer bases. Eastern European cell capacity is likely to get a further boost as cost is one of the key reasons for many Asian suppliers when deciding where to base operations. Despite aggressive investment plans in Germany, there is still focus on Hungary and Eastern Europe with upstream cathode producers, and downstream EV automakers investing in the country."
CATL is building a 100-GWh battery plant at Debrecen to supply its European customers, including Mercedes-Benz (Stuttgart, Germany) and BMW. Also at Debrecen, BMW is pushing forward with a US$1 billion project to build a high-voltage battery assembly unit to serve the production needs of the full EV vehicles that will be produced there at a manufacturing plant currently under construction. SK Innovation is constructing a 30-GWh battery plant at Iváncsa in the Közép-Dunántúl region. It will be almost double the size of its two Komorom-located battery plants combined and will produce enough batteries for roughly 430,000 EVs per year. South Korean chemicals company EcoPro BM, the world's second-largest cathode producer, is spending US$500 million on the first phase of a cathode material plant, also at Debrecen. It will be commissioned next year and by 2026 it will account for a quarter of Europe's cathode production capacity.
Hartley said Hungary's attractive subsidies have helped lure leading battery making companies. "The Hungarian government has also historically provided subsidies to cell producers, with SKI receiving around US$227 million for the 30-GWh Iváncsa plant."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
