IIAs 2026 | CATL’s Gigafactory in Debrecen, Hungary

Why It Matters

The investment underscores China’s aggressive push into Europe’s EV battery supply chain, shaping regional job markets and influencing EU energy‑transition policies. Its scale and timing could shift competitive dynamics among battery manufacturers across the continent.

Key Takeaways

• €7.34 bn investment, Hungary's largest greenfield project.
• 1,200 jobs created, workforce already exceeds target.
• Cell production slated for first half 2026.
• Adds to CATL sites in Germany and Spain.
• Sustainability scores lowered due to water, energy concerns.

Pulse Analysis

Europe’s electric‑vehicle surge has turned battery capacity into a strategic asset, and CATL’s Debrecen gigafactory is a direct response to that demand. The €7.34 bn outlay not only marks the biggest single greenfield investment in Hungarian history but also signals the Chinese firm’s intent to secure a foothold in the EU’s high‑value supply chain. By moving from module assembly in a temporary building to full‑scale cell production by mid‑2026, CATL aims to shorten logistics, reduce tariffs, and meet automakers’ near‑term volume targets, positioning itself against rivals such as LG Energy Solution and Samsung SDI.

The local impact is equally significant. With a workforce exceeding 1,200, the plant creates a new talent pipeline through partnerships with Debrecen’s universities and vocational schools, addressing the EU’s skills gap in advanced manufacturing. The project aligns with Hungary’s industrial policy to attract high‑tech FDI, boosting regional GDP and enhancing export potential. Moreover, the presence of a major battery supplier may encourage ancillary firms—software, recycling, and component manufacturers—to cluster nearby, fostering an ecosystem that can accelerate innovation and lower costs for downstream automotive OEMs.

However, sustainability concerns temper the project’s accolades. Judges highlighted the plant’s water and energy intensity, prompting CATL to announce process optimisations and water‑reduction technologies. As EU regulators tighten environmental standards, the factory’s ability to meet stringent criteria will be a litmus test for future battery projects. Successful mitigation could set a benchmark for greener gigafactories, while shortcomings may invite stricter oversight, influencing investment decisions across the continent. The Debrecen site thus sits at the crossroads of economic ambition and ecological responsibility, shaping the narrative of Europe’s clean‑mobility transition.

IIAs 2026 | CATL’s gigafactory in Debrecen, Hungary

Alex Irwin‑Hunt · February 12 2026

Battery hub: Chinese battery maker CATL’s first factory in Debrecen © CATL

CATL’s landmark €7.3 bn factory investment in Debrecen has been recognised as the most impactful operational mega‑FDI project in Europe for its wide‑ranging impacts.

The Chinese manufacturer has already assembled more than 120,000 battery modules at a rented building in Debrecen since August 2024. Production of lithium‑ion cells is scheduled to begin at its first completed factory in the first half of 2026.

“It is a priority for the company to launch production in full compliance with applicable EU and Hungarian legislation while promoting regional and national economic growth,” a CATL spokesperson tells fDi via email.

The project, which is the largest single greenfield investment in Hungary’s history, is key to CATL’s European expansion. It adds to another factory in Erfurt, Germany, which began cell production in 2023, and CATL’s battery joint venture with Stellantis in Zaragoza, Spain. The judging panel gave CATL Debrecen high marks for its impact on jobs, skills development, productivity, innovation and national FDI priorities.

Project by the numbers

• Investor, HQ country: Contemporary Amperex Technology Co., Limited, China

• Location: Debrecen, Hungary

• Sector: Electronic components (batteries)

• Capital investment: €7.34 bn

• Jobs created (according to CATL): 1,200

Since recruitment began in 2023, CATL’s workforce in Debrecen has surpassed 1,200, according to the company spokesperson. CATL has also signed agreements with local universities and the Debrecen Vocational Training Centre in 2024.

However, the judges gave lower marks for CATL Debrecen’s impact on sustainability, reflecting local environmental concerns over the factory’s water and energy usage.

In response, “CATL has optimised its manufacturing processes with sustainability in mind,” says the company spokesperson. “These efforts are reflected in reducing the facility’s energy consumption and implementing a new technology in order to reduce the plant’s potable water demand.”

This article is part of the Special Report: Investment Impact Awards 2026.