Hungary races to lead Europe's battery industry

Hungary is rapidly becoming a key player in Europe's electric vehicle battery market. With billions in investments, the country is positioning itself as a leading battery producer by 2030.

At the center of this transformation is Debrecen. Global automakers and suppliers are reshaping the city, driving economic expansion and population growth.

Workers at a suit factory in Debrecen cut and stitch fabric with precision. For Bátor Ulziibadrakh, owner of Titem Suits, business is about more than fashion—it's about change.

"Debrecen has been developing very intensively over the last 10-15 years," Ulziibadrakh said. "It's becoming an industrial city."

Ulziibadrakh, originally from Mongolia, came to Debrecen in the early 1990s to study engineering. He later worked in a suit factory before launching his own business. Back then, few foreigners lived in the city. Now he serves a growing international clientele, including engineers and executives.

"A German company opened nearby, and they started shopping here," he said. "We see South Korean and Japanese customers, too. The development in Debrecen is promising for business."

The biggest driver of change is Chinese battery giant CATL. The company is investing $8 billion in what will be Europe's largest battery plant, supplying automakers like Mercedes-Benz.

"Debrecen is the right place for CATL, and CATL is the right company for Debrecen," said Noemi Sidlo, CATL's PR manager. "We're committed to staying here for the long term."

CATL has already created hundreds of jobs. Thousands more are expected once production starts later this year.

"We now have almost 650 employees, with 20 percent expats," Sidlo said. "Some are returning home after years abroad, drawn by new opportunities."

Hungary is Europe's fourth-largest battery producer. By 2030, it could rank second, behind only Germany. Companies like BMW, Mercedes, and South Korea's EcoPro BM are also investing billions in the sector.

Debrecen's expansion is fueling a real estate boom. Construction cranes dominate the skyline, and new apartment buildings, offices and infrastructure projects are rising to meet demand.

"We have built shuttle bus services for workers in small villages," Sidlo said. "Now, we're recruiting nationwide, and some people are moving here long term."

City officials emphasize sustainability. CATL says its plant will meet strict environmental standards.

"We aim for carbon neutrality," Sidlo said. "Our factory will use solar panels and green energy to minimize impact. CATL already has nine carbon-neutral factories, and we are implementing similar measures in Debrecen."

For now, Debrecen keeps growing. A city known for its academic and literary heritage is now leading Hungary's modern green transition.