On November 20, Bloomberg reported today that CATL is having talks about setting up a battery recycling business in Europe. As the company is getting ready to start battery production in Hungary, this move will expand its business in Europe.

Jason Chen, the regional operations head of CATL, said the company is discussing possible locations with governments in Europe, including Hungary. When speaking in Budapest, he said a new battery manufacturing plant in Hungary is expected to start operating in the second half of 2025. CATL hopes to achieve a closed loop from manufacturing to recycling in Europe.

It's worth noting that the battery factory of CATL in Hungary is in the Debrecen area, about 2.5 hours' drive from Budapest. The target for the first phase of the factory is an annual capacity of 40GWh, and it will later expand to 100GWh, which can support providing batteries for more than 1 million vehicles.

At the same time, CATL is looking for local suppliers, including those of raw materials. "Some companies have already sent test samples. But these negotiations are just at the beginning and must meet the competition requirements," Jason Che revealed.

Also, Jason Chen dismissed concerns about a slowdown in the transition to electric vehicles. Currently, automakers including Volkswagen AG and Daimler AG (the main customers of CATL in Hungary) are slowing down their electrification targets.

"Up to now, we haven't seen much impact. We don't rely on a single customer," Jason Chen said straightforwardly. He believes that electrification is an "irreversible trend."