BUSINESS

CATL’s Hungary Cell Plant Halted After Nickel Exposure Incident

Published: Sep. 2, 2026 12:43 a.m. GMT+8

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The construction site of CATL's factory in Debrecen, Hungary, on May 5, 2024. Photo: VCG

A cell production project at Contemporary Amperex Technology Co. Ltd.’s battery plant in Hungary has been temporarily suspended following an occupational safety incident involving workers’ exposure to nickel.

The Hajdú-Bihar County Government Office said on Monday that CATL must correct safety deficiencies before operations can begin, though regulators are allowing equipment testing to continue. The Chinese battery maker said in 2022 it would invest 7.34 billion euros ($8.6 billion) in a 100-gigawatt-hour factory in Debrecen designed to produce battery modules and cells.

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CATL's Hungary cell production halted after nine workers showed elevated nickel levels; regulators ordered fixes in laser-cutting, winding and cell-drying workshops.
First-phase production license granted Aug 25, but output may miss Q2 2026 target; second-phase permit rejected Aug 19.
Hungary's new government tightened oversight, fining CATL 10 million forints; BYD and Yunnan Energy also faced penalties, prompting Chinese guidance on overseas compliance.

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Who’s Who

Contemporary Amperex Technology Co. Ltd.: Contemporary Amperex Technology Co. Ltd. (CATL) faces suspended cell production at its Hungarian plant after worker nickel exposure. Regulators demand safety fixes; CATL invested €7.34 billion in Debrecen. It was fined for environmental violations, and Hungary's new government tightened scrutiny. CATL supplies Mercedes-Benz from other facilities at extra cost, causing delays.

Mercedes-Benz: According to the article, Mercedes-Benz is a customer of CATL. Due to the suspension of CATL’s cell production in Hungary, CATL is supplying Mercedes-Benz from other facilities at additional cost.

BMW: According to the article, BMW production at CATL's Hungarian battery plant has not yet begun. The cell production line was temporarily suspended due to safety deficiencies, causing delays that affect supply to customers like BMW.

Samsung: According to the article, Hungary's transport and investment minister said on Aug. 16 that major foreign investments, including projects by Samsung, would no longer be exempt from environmental and urban-planning rules. Under the new approach, companies found in violation would be unable to obtain new permits for at least six months.

SK On: SK On (SK On) is a company referenced in the article as having major foreign investments in Hungary. Under new Hungarian government policy announced August 16, projects by SK On, CATL, and Samsung will no longer be exempt from environmental and urban-planning rules; violators cannot obtain new permits for at least six months.

Yunnan Energy New Material Co. Ltd.: Yunnan Energy New Material Co. Ltd., a battery separator maker, had its Hungarian subsidiary's operations suspended in June after groundwater contamination. This followed stricter oversight in Hungary after the 2026 political shift.

BYD Co. Ltd.: According to the article, BYD Co. Ltd.'s passenger-car plant being built in Hungary was investigated and fined 10 million forints for improper soil dumping. Its start of operations was pushed back from the fourth quarter of 2025 to late 2026, amid stricter oversight of Chinese manufacturers following Hungary's political shift.

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What Happened When

2022：: CATL announced a 7.34 billion euro investment in a 100-gigawatt-hour factory in Debrecen, Hungary.

Fall 2024：: CATL began producing battery modules at leased facilities.

April 2026：: Hungary’s opposition unseated the ruling coalition, triggering broad reviews of major foreign investment projects.

May 2026：: CATL opened its own 5-gigawatt-hour module plant.

June 2026：: Operations at the Hungarian subsidiary of Yunnan Energy New Material Co. Ltd. were suspended after groundwater contamination.

Early August 2026：: Nine employees showed elevated nickel levels during routine biological monitoring tied to preparatory work.

Aug. 11, 2026：: Regulators inspected the site, finding inadequate protective equipment in some areas.

Aug. 16, 2026：: Hungary’s transport and investment minister said major foreign investments would no longer be exempt from environmental and urban-planning rules.

Aug. 19, 2026：: The county government rejected a production permit for the plant’s second phase.

Aug. 24, 2026：: A Hungarian lawmaker said CATL had been fined 10 million forints for environmental violations.

Aug. 25, 2026：: The Hajdú-Bihar County Government Office said CATL must correct safety deficiencies before operations can begin; the first phase received a production license.

Tuesday, Aug. 26, 2026：: China’s commerce, industry and market-regulation authorities jointly issued guidance urging the auto sector to strengthen compliance in foreign markets.

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