Chinese Manufacturers in Hungary and the Latest Developments

In recent years, Hungary has become a hotspot for manufacturing investment by Chinese companies. Major players—particularly in the electric vehicle (EV) and battery sectors—such as BYD, NIO, and CATL have successively entered the market, and the Orbán administration positions investment from China as an “indispensable driver of economic growth.” Located in Central Europe with a strong automotive workforce, and coupled with tax incentives, Hungary has become a strategic base for Chinese companies to access the European market. This article organizes information on major Chinese manufacturing companies based in Hungary, covering their locations, product lines, entry timelines, and the latest developments.

BYD (比亚迪) — Expansion of EV Bus & Passenger Vehicle Manufacturing Bases

Company Overview: BYD (Build Your Dreams, 比亚迪), a major Chinese EV manufacturer, opened its first European electric bus factory in Komárom, northern Hungary, in 2017. It now manufactures electric buses and trucks, having delivered more than 700 units across Europe. In 2025, the company began expanding the existing plant with plans to triple its capacity to over 1,000 units per year. A groundbreaking ceremony for a new 29,000 m² extension building was held in June, and the project is expected to create more than 600 jobs. In addition, BYD is building a €500 million passenger car assembly plant in Szeged in the south, aiming to begin operations in the second half of 2025. This will be the company’s first passenger vehicle plant in Europe, with an initial capacity of 150,000 units per year and an eventual target of 300,000 units. However, full-scale mass production is expected to be delayed until 2026, and output in the first year will likely be in the tens of thousands. BYD also plans to establish its European headquarters and an R&D center in Budapest, positioning Hungary as the core base of its European strategy.

CATL (宁德时代) — Europe’s Largest EV Battery Gigafactory

Company Overview: CATL (宁德时代), the world’s largest EV battery maker, is building its second European giga-scale battery factory on the outskirts of Debrecen, Hungary’s second-largest city. The investment totals approximately €7.3 billion, with a site area of about 220 hectares (roughly five times the size of Tokyo Disneyland), an overwhelming scale. This plant is the largest foreign investment project in Hungary’s history and is slated to supply automotive batteries to major European automakers including Mercedes, BMW, Stellantis, and VW. Commercial production is scheduled to begin by the end of 2025, with a goal of reaching an annual capacity of 100 GWh (enough for over one million vehicles) by 2030. If realized, Hungary would become Europe’s second-largest EV battery producer after Germany and one of the leading battery production hubs worldwide. Meanwhile, local opposition and lawsuits have arisen over environmental risk concerns. CATL states that it will “comply with environmental regulations and focus on ecosystem protection,” emphasizing the construction of a cutting-edge, environmentally conscious plant.

EVE Energy (亿纬锂能) — Cylindrical Battery Plant for BMW

Company Overview: EVE Energy (惠州亿纬锂能), a Chinese battery manufacturer, is building a new plant in Debrecen for large cylindrical (46 mm diameter) EV batteries. After partnering with BMW in 2022, EVE will supply battery cells to BMW’s next-generation EV plant (adopting the Neue Klasse platform) being built in Debrecen. Following the contract, EVE announced in March 2022 its plan to build its first European factory. The investment totals around €1.3 billion, with a targeted annual capacity of 30 GWh, and operations are scheduled to start by 2025 in line with BMW’s plant ramp-up. While EVE is a mid-sized player domestically behind CATL, this plant is intended to expand the company’s European presence and take the lead in the large cylindrical battery segment (Tesla-style). The site is within the same Debrecen industrial park as the BMW plant to improve supply efficiency and avoid tariffs through local production.

Hytera / Sunwoda (欣旺达) — New EV Battery Base in Nyíregyháza

Company Overview: Sunwoda (欣旺达), a major Chinese battery maker, is constructing its first European EV lithium battery plant in Nyíregyháza in northeastern Hungary. Announced in July 2023, the first phase involves an investment of approximately €245 million, aiming to start operations by the end of 2025. Ranked among the world’s top 10 battery cell manufacturers, Sunwoda views this Hungarian facility as the first step in its European market strategy. The plan envisions expanding to a total investment of €1.5 billion and creating over 1,000 jobs, with production lines added in stages. Environmentally, the plant aims to use recycled water for 90% of process cooling and set internal emission standards (e.g., for NMP solvent) below legal limits, introducing the latest equipment aligned with European environmental regulations. In August 2025, the EU approved €264 million in Hungarian state aid for the project, supporting its progress.

SEMCORP (恩捷股份) — Lithium-Ion Battery Separator Production in Debrecen

Company Overview: SEMCORP (恩捷新材料), China’s largest lithium-ion battery separator (film) manufacturer, has established its first overseas manufacturing base in Debrecen. The first-phase plant (97,000 m²) had initially planned to start operations in early 2023, but construction took longer than expected, and trial operations finally began in June 2025. The total investment is around €630 million (two phases combined), with plans for annual output on the order of 1 billion m², including four coating lines. However, soon after trial operations began, environmental monitoring detected emissions above permitted levels, and authorities issued temporary suspension orders for 7 of 16 emission sources, creating an operational setback. SEMCORP immediately appealed while taking corrective measures to ensure compliance. A second plant of similar scale is already in planning, with third and fourth phases envisioned as part of a broader expansion strategy. To meet rising demand from European and American automakers, the key challenge is balancing stringent quality control with full compliance to environmental standards.

Huayou Cobalt (华友钴业) — Large High-Nickel Cathode Material Plant in Ács

Company Overview: Huayou Cobalt (华友钴业), a major Chinese battery materials producer, will build Europe’s first high-nickel ternary cathode material plant in Ács in northwestern Hungary. Announced in June 2023, the investment totals approximately €1.27 billion, a gigaproject designed to produce 100,000 tons per year of cathode materials. With strengths in cobalt and nickel refining technologies, the company is expanding its supply network for EV battery materials in and outside China. The Hungarian plant will supply high-performance cathode materials to European battery makers and automotive OEMs, with plans to create around 900 jobs. The investment will significantly reinforce Hungary’s EV battery supply chain, contributing to a more integrated system from raw materials to cell production. Ács is close to BYD’s bus plant and SK on’s battery plant, and synergies with existing auto and battery clusters are expected.

Halms (华朔科技) — EV Parts Production in Miskolc and Debrecen

Company Overview: Halms Hungary (Zhejiang Huashuo Technology) is a Chinese EV parts manufacturer with supply track records that include Tesla. In 2023, it began building a parts plant in Debrecen, investing about €40 million to establish a production base for electric vehicle components. Furthermore, in 2025 the company announced a major new plant in Miskolc in the northeast, with an investment of approximately HUF 80 billion (about €200 million). The Miskolc factory will be built in three phases and is expected to create over 1,000 new jobs. According to Foreign Affairs and Trade Minister Péter Szijjártó, Halms’ new investment will significantly enhance Hungary’s economic competitiveness and technological level, and synergies with the Debrecen plant are also anticipated. In this way, Halms is pursuing a two-base structure in Debrecen and Miskolc, becoming deeply embedded in Hungary’s EV supply chain.

Kedali (科达利) — Expansion of the Battery Components Plant in Gödöllő

Company Overview: Kedali (深圳市科达利实业) is a major manufacturer of aluminum housings and structural parts for lithium batteries. To supply customers such as Samsung SDI, the company entered the industrial park in Gödöllő near Budapest and began operating its first-phase plant in 2021. The first phase mainly produces cases for cylindrical and prismatic cells, and the second-phase line, started in 2022, was slated to come online in 2023. Furthermore, in June 2025 the company announced a third-phase expansion, planning to invest up to €50 million to boost capacity. The new lines will reinforce production of precision components for prismatic and cylindrical batteries, with a construction period of about 24 months. At full operation, annual sales are expected to reach €100 million, responding to demand from customers in Europe and the U.S., including Tesla, Panasonic, ACC, and LG. Kedali’s Hungarian site is also integrated into the parts supply system for CATL’s Debrecen plant, underpinning the local EV battery ecosystem.

NIO (蔚来) — Supporting European Expansion via a Battery Swap Hub

Company Overview: NIO (蔚来), an emerging Chinese EV maker, positions Hungary as the European base for its battery swap station business (Power Swap Station). The company established the NIO Power Europe Plant in Biatorbágy near Budapest and shipped its first swap station products in September 2022. This facility is NIO’s first overseas plant, handling manufacturing and after-sales service of swap stations, personnel training, and R&D for charging equipment. By the end of 2023, more than 30 swap stations were operating across five European countries, all shipped from this factory. Through the Hungarian base, NIO aims to install 1,000 stations across Europe by 2025, and local production facilitates EU certification and customization of the equipment. The latest developments include preparations for mass production of the third-generation swap station, and there are plans to assemble charging stand products in the future. NIO’s initiatives represent a strategy to penetrate the European market not only through EV sales but also via the battery swap infrastructure business.

Wanhua Chemical / BorsodChem（万华化学 – 博尔索德化学） — A Leap Forward for Hungary’s Historic Chemical Plant

Company Overview: Wanhua Chemical (万华化学), a major chemical company from Shandong, China, acquired Hungary’s long-established chemical manufacturer BorsodChem for approximately €1.23 billion in 2011. This was the largest acquisition by a Chinese company in Central and Eastern Europe, and Wanhua has since used BorsodChem as a core base for entering the European market. Based in Kazincbarcika in northeastern Hungary, the company is one of Europe’s largest producers of urethane raw materials such as MDI (methylene diphenyl diisocyanate) and TDI (toluene diisocyanate). After the acquisition, Wanhua continued to invest, including establishing a new aniline plant to localize MDI feedstock and introducing a cogeneration power plant to support expanded facilities. As a result, BorsodChem has become one of the largest TDI manufacturers in Europe, significantly improving production stability and energy efficiency. For these achievements, Wanhua received the 2024 Hungary Investment Award “Lifetime Achievement Award,” the only Chinese capital recipient. Local employment has risen substantially, and the company has earned high marks for its contributions to the regional economy and its initiatives in environment and safety (Responsible Care). Through steady investments spanning more than 13 years, BorsodChem has achieved further growth in both name and reality under Chinese ownership.

Lenovo（联想） — Üllő Server Manufacturing Base and European Expansion

Company Overview: Lenovo (联想), a Chinese-born IT manufacturer, positions Hungary as its European production hub. The company built a roughly 50,000 m² own factory in Üllő near Budapest, which began operations in June 2022. This is the company’s first in-house manufacturing base in Europe, producing data center servers and storage as well as high-end PC workstations. Within one year of operation, the site shipped over 1 million units, delivering to more than 1,000 customers across 69 countries in Europe, the Middle East, and Africa. Local headcount grew by 20% within the first year, and Lenovo received a Most Jobs Created award from the Hungarian government. Leveraging its geographical advantage, manufacturing within Europe—rather than shipping products from China—has reduced transport distance and CO₂ emissions by more than 90%. The company is also actively installing rooftop solar panels and introducing energy-saving measures, drawing attention as a model of smart manufacturing combined with sustainability. For Lenovo, the Üllő factory has become a flagship site that embodies “Built in Europe, for Europe,” with plans to further expand lines and roll out new products.

Zoomlion（中联重科） — European Smart Factory Plan by a Construction Machinery Giant

Company Overview: Zoomlion (中联重科), China’s largest construction machinery manufacturer, announced a new factory plan in February 2025 in Hungary. The location is near Tatabánya in the west, where it will build a 35,000 m² smart factory to produce aerial work platforms such as scissor lifts and boom lifts. The site will also include a 20,000 m² test area and service facilities, and the company plans to introduce the latest digital production technologies and environmentally friendly processes. Zoomlion is promoting the project under a 10-year lease agreement in partnership with Dutch developer CTP, and reports say the investment is around €100 million (per Hungarian authorities). Co-president Wang Yongxiang stated that local production will enhance service and supply efficiency for European customers, strengthening regionally focused business development. This will be Zoomlion’s first manufacturing base in Europe, aiming to build a localized production and sales system to compete with American and European rivals. Construction is scheduled to begin within 2025, and once operational the plant will serve as a supply base of aerial work platforms across Europe, expanding Hungary’s industrial portfolio in this field.

Although these companies span different industries, Hungary’s proactive investment promotion and the strategic ambitions of Chinese companies to penetrate the European market align, and a diverse set of manufacturing bases—from EVs to industrial goods and chemicals—is clustering in Hungary. With Central Europe’s geographic advantages, an established automotive industrial base, and strong government support, Hungary has become an indispensable European gateway for Chinese firms. New investments and expansion plans are expected to continue, and Hungary’s presence on the map of European manufacturing will likely grow even more prominent.

Reference:

https://theevreport.com/hungary-welcomes-chinese-ev-investments