Hungary on the Way to Become the Second Largest Producer of Electric Batteries

MTI-Hungary Today 2023.10.19.

Thanks to the investments of Eastern companies, Hungary is now in fourth place in the production of electric batteries, but will soon move up to second place in the global ranking, Minister of Foreign Affairs and Trade Péter Szijjártó said in Beijing on Wednesday.

The minister told the international forum of the Belt and Road initiative that Hungary is the best example of mutually beneficial cooperation between East and West, having made great efforts to become an important meeting point for investment from both directions.

He pointed out that

all three German premium car brands will have production bases in Hungary. He also added that all of the world’s ten largest electric battery manufacturers are Eastern companies, five of which have already committed to Hungary, including the largest company in the sector, China’s CATL.

This is the reason why Hungary is currently in fourth place in the global ranking in terms of battery manufacturing capacity and will soon move up to second place, he emphasized.

“The reason why we have not set the goal of becoming the world leader is that China is the world leader,” he concluded.

Chinese investments have been playing a major role in Hungary’s economic safety. By the end of last year, Hungary had attracted the most Chinese investment in the Central-Eastern European region.

Fact

Last September, the Hungarian government announced that CATL would be the biggest investment in the country’s history, worth up to EUR 7.9 billion and creating 9,000 jobs in Debrecen (eastern Hungary). However, due to strong opposition from Debrecen residents, in February this year the project was granted an environmental permit under very strict conditions. Protests have been going on ever since. Some already talk of the project as a poison factory, due to their impact on the security of water supply, while others fear the impact on the environment. The World Wide Fund for Nature (WWF) and Greenpeace, two global green organizations, have previously backed the project publicly, saying countries can benefit from the investments as long as they do not harm the environment.

Further negotiations are expected in the future; however, it must be noted that Europe’s green transition is unthinkable without batteries and battery factories.

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If there is one country in the world whose economy is determined by the automotive industry, it is clearly Hungary, Foreign Minister Péter Szijjártó said.Continue reading

Via MTI, Featured image via Facebook/Qingdao Multinationals Summit