CATL, the Chinese EV battery hegemon, is in talks to set up battery recycling facilities in Europe, Bloomberg reports. The initiative is being considered as the company prepares to produce battery cells at its new factory in Debrecen, Hungary. to start operations at the end of 2025.
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Jason Chen, CATL’s regional head for Europe, stated that discussions are underway with European governments, including Hungary, to determine possible locations for the recycling facilities. The company aims to carry out recycling activities locally to support its European production processes.
In addition to recycling, CATL is initially in discussions with regional suppliers to secure raw materials within Europe. The recycling project could involve cooperation with existing local companies or CATL’s subsidiary, Guangdong Brunp Recycling Technology Co., reports claims.
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The upcoming factory in Hungary represents CATL’s most significant greenfield investment in Europe. The first phase of the facility is expected to produce 40 GWh of battery capacity annually, with plans to scale up to 100 GWh. The project is expected to employ up to 3,000 workers, with preference given to local staff.
No formal agreements have yet been made for the recycling activities, but CATL’s plans come amid increased European regulatory focus on battery sustainability and the localization of supply chains.
Chen played down concerns about the transition to electric vehicles, despite some automakers including Volkswagen and Mercedes-Benz – key customers of CATL’s Hungarian operations – scaling back their electrification targets. Meanwhile, Swedish battery maker Northvolt is facing financial problems, with slower production growth and weaker demand leading to a financing gap.
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“We have not observed any significant impacts so far and we are not dependent on a single customer,” said Chen, who described electrification as an “irreversible trend.”
CATL’s main customers are Tesla, Volkswagen, Nio, Xpeng, Toyota and Honda. CATL’s market share in China reached 42.8% in October as it installed 25.32 GWh of EV batteries, up 50.9% from last year, according to data monitored by China EV DataTracker.
