Hungary has become a major hub for Chinese manufacturing investment in Europe in recent years. In 2024, 31% of Chinese outbound FDI to Europe went to Hungary, marking the second consecutive year the country ranked first in this measure. As of 2025, the total value of large-scale Chinese investment projects underway in Hungary amounts to HUF 5.5 trillion (approximately €16 billion), with 64 major projects in progress. While large EV battery plant projects dominate the landscape, investments in other sectors such as semiconductors, steel, and electronics are also present. This article provides an overview of the main Chinese manufacturing investment projects in Hungary as of 2025 and beyond, organized by sector and company.
EV Battery Industry: CATL and EVE Mega-Factories
In Debrecen, eastern Hungary, China’s CATL (Contemporary Amperex Technology Co. Limited) is building what will be the largest EV lithium battery factory in Europe. The investment totals approximately €7.3 billion and is expected to create 9,000 jobs. The plant is scheduled to start production in 2025, with an initial annual capacity of 40 GWh, expandable to 100 GWh in the future. Once operational, it will supply batteries to major automakers manufacturing in Hungary, including BMW, Mercedes-Benz, Stellantis, and Volkswagen. Although there have been local concerns over environmental impacts, the Hungarian government has pledged around €2 billion in infrastructure support and tax incentives to secure the project.
Also in Debrecen, China’s EVE Energy announced in 2023 that it would invest more than €1 billion to build its first manufacturing base in Europe. The plant is scheduled to start operations by 2026, producing approximately 28 GWh of cylindrical battery cells annually, primarily for BMW’s EV assembly plant under construction in the same city. The Hungarian government has allocated about €37.5 million in subsidies for the project, which is expected to create over 1,000 new jobs.
Around Debrecen, several Chinese component suppliers have followed these anchor investments. Semcorp, for example, has built a lithium-ion battery separator plant with an investment of about €184 million, which began operations in 2024. Shenzhen Kedali has constructed an EV aluminum component plant in Gödöllő, near Budapest, investing €40 million to supply companies such as Samsung SDI. These developments are forming a comprehensive Chinese battery supply chain cluster in Hungary.
Electric Vehicles and Electric Buses: BYD’s Expanding Presence
BYD, one of the world’s largest EV manufacturers, is investing heavily in Hungary. Its largest current project is a passenger car plant under construction in Szeged in southern Hungary. The €4 billion facility covers 300 hectares and will be BYD’s first passenger car assembly plant in Europe. Operations are scheduled to start in October 2025, with initial annual output in 2026 projected at several tens of thousands of vehicles—below the originally planned 150,000 units—but with expansion capacity up to 300,000 units annually by 2027 or later. The plant is considered a strategic base for BYD’s penetration of the European market, and supplier engagement events are already being held. The Hungarian government has pledged €122–125 million in infrastructure support.
BYD also operates an electric bus plant in Komárom, northern Hungary, opened in 2017 as its first European production base. In June 2025, BYD announced an additional investment of HUF 32 billion (approx. $94 million) to triple output capacity. A new plant building will be constructed, increasing combined annual output capacity for buses and trucks to 1,250 units. The expansion will include an R&D lab and is supported by HUF 3.1 billion in government subsidies.
In addition, BYD has announced plans to establish a regional headquarters and R&D center in Budapest, further consolidating Hungary’s role as the company’s European base. Other Chinese EV makers are also present; NIO opened a battery swap station manufacturing plant near Budapest in 2022, capable of producing several hundred swap stations annually for the European market.
Steel Sector: Green Transformation with Chinese Support
Chinese companies are also active outside the automotive sector. Hungary’s largest steel mill, the Dunaújváros Steel Plant (formerly Dunaferr), now owned by the UK-based Liberty Steel, is undergoing modernization with Chinese involvement. In May 2024, Liberty Steel and CISDI Engineering (a subsidiary of China Metallurgical Group Corporation) signed a contract to convert the plant into a green steel facility. The core of the plan is the installation of two state-of-the-art 150-ton electric arc furnaces (EAFs), with a total investment cost of about €1.3 billion. Financing is being provided through loans from the Export–Import Bank of China, backed by China Export & Credit Insurance Corporation (Sinosure). The new EAFs will have a combined annual capacity of over 1.5 million tonnes, enabling the production of high-quality automotive-grade steel while cutting CO₂ emissions by 80%. The phased modernization process is expected to progress from 2025 onwards.
Electronics: Lenovo’s European Factory and Huawei’s Supply Hub
Chinese electronics and IT manufacturers have also established a presence in Hungary. In June 2022, Lenovo opened its first in-house factory in Europe in Üllő, near Budapest, investing about HUF 8.2 billion (€24.7 million). The three-storey facility covers about 50,000 m² and produces servers, storage systems, and high-performance PC workstations for Europe, the Middle East, and Africa. It has the capacity to assemble 1,000 servers and 4,000 workstations daily and employs over 1,000 people. Within a year of opening, the plant had shipped over one million products.
Huawei operates one of its largest overseas logistics hubs in Páty, near Budapest, which serves as a European supply center for telecom equipment including 5G gear. The fully automated facility plays a key role in Huawei’s European operations.
Conclusion
From Debrecen in the east to Szeged in the south, Komárom in the north, and the Budapest metropolitan area, Chinese manufacturing investments are spreading across Hungary. They range from next-generation EV battery production and vehicle assembly to steel industry modernization and high-tech electronics manufacturing. The Hungarian government has actively pursued a policy of attracting Chinese investment through subsidies, infrastructure support, and tax incentives, positioning the country as a key European base for Chinese manufacturers. Given the scale and diversity of these projects, this trend is expected to continue beyond 2025.
(Reference)
https://www.vg.hu/nemzetkozi-gazdasag/2025/05/kina-magyarorszagot-szereti-a-legjobban
https://www.jetro.go.jp/biz/areareports/special/2024/1201/5137faa0888a099f.html
https://cepa.org/article/xi-and-china-electric-cars-drive-into-hungary/
https://www.vg.hu/nemzetkozi-gazdasag/2025/05/kina-magyarorszagot-szereti-a-legjobban
https://dailynewshungary.com/hungarys-largest-steel-producer-gets-chinese-support-for-green-upgrade/
