The construction of Europe’s largest factory for manufacturing batteries for electric vehicles near the city of Debrecen in eastern Hungary is a significant undertaking. This endeavor, spearheaded by China’s Contemporary Amperex Technology Co. Ltd., stands as a prominent symbol of Hungary’s commitment to thriving in Europe’s green transition. Notably, Hungary ranks at the forefront globally in terms of per capita battery production acceleration.
However, beyond the economic benefits, concerns have been raised by environmental activists, community leaders, and political opponents regarding the potential costs associated with this ambitious plan. Critics argue that the government, which exercises control over various aspects of Hungarian society, including the courts, regulators, and media, has overlooked these concerns in its pursuit of securing its future rule.
The partnership between CATL and Mercedes-Benz AG in constructing a $7.8 billion facility is hailed as Hungary’s most significant foreign direct investment to date. Two other battery suppliers are also building their own plants adjacent to the site, while another Chinese firm, EVE Energy Co. Ltd., is establishing its facility next to BMW AG’s newly constructed factory.
Multiple concerns have emerged in relation to these developments. These include the potential loss of valuable agricultural land, strain on water and energy resources, and questions surrounding the proper disposal of used batteries. Additionally, there is apprehension regarding the possibility of accidents in factories dealing with hazardous materials such as lithium.
Town hall meetings concerning these battery-related investments have often devolved into heated arguments, even in areas traditionally aligned with Prime Minister Viktor Orban’s ruling Fidesz party. Some individuals have labeled local officials as “traitors.” In response to the outcry, the government has amended laws to eliminate the requirement of in-person consultations.
Zoltan Timar, the Fidesz mayor of Mikepercs, the suburb closest to the CATL plant, expressed the sentiment shared by many: “Nobody asked us if we wanted this plant.” He emphasized the local apprehension regarding the handling of hazardous substances and the fear it has instilled in people.
CATL claims to possess the necessary expertise to ensure that no pollution is released into the air or water. The company also expresses willingness to collaborate with local authorities to prevent any potential contamination outside the plant.
Nonetheless, the anxiety voiced by Timar is echoed throughout various Hungarian communities. Over a dozen interviews conducted with residents, officials, and environmental groups reveal that the battery boom has left virtually no corner of the country untouched.
These tensions underscore the complexities of embracing green initiatives. While electric vehicles are celebrated as a means of reducing emissions and combating climate change, critics argue that local environmental costs are being disregarded in favor of economic gains.
Hungary currently houses six battery plants that are either operational or in the process of construction. Additionally, approximately two dozen other companies involved in the production chain have established a presence in the country.
The first battery plant, converted from a plasma screen factory, opened in Göd, north of Budapest on the banks of the Danube River, in 2017. Concerns regarding noise pollution and alleged water contamination were raised by residents living nearby. Despite years of complaints, both the government and Samsung SDI, the South Korean conglomerate operating the plant, continued to expand the facility.
Julianna Lam Palla, a teacher in Göd, reported a foul odor resembling “rotten fish” emanating from her tap water. Although she lacked concrete evidence linking it to the battery plant, her experiences of being ignored by local officials prompted her decision to relocate. Lam Palla expressed frustration, stating, “There are so many questions, so much anger and disillusionment.”
The situation worsened when an opposition party gained control of the local municipality in 2019 and promised to investigate claims of environmental damage. In response, Orban’s government diverted the factory’s lucrative business tax receipts away from Göd to neighboring areas.
Activists took matters into their own hands by conducting pollution measurements, which revealed the presence of N-methyl-2-pyrrolidone (NMP), a commonly used solvent in battery cathode electrode manufacturing, in wells.
Zsuzsa Bodnar, a vice president of the local environmental group Göd-ÉRT, asserted, “We don’t fear that they’re polluting; we know they are.” She expressed frustration with authorities’ refusal to conduct tests and acknowledge their findings.
A study published in Scientific Reports this year indicated the presence of lithium in tap water across Hungary’s 19 counties, although the quantities were not deemed hazardous to human health.
After five years of operation, Samsung SDI is now conducting a comprehensive environmental impact study. The company has applied for a pollution prevention and control permit, given that its activities have reached levels requiring such measures.
Samsung SDI stated that it is making continuous efforts to address environmental concerns in Göd. The company collaborates closely with Hungarian authorities and civil groups, conducting water tests to affirm the absence of NMP or any other harmful substances in the water and air.
The municipality of Göd, currently led by a Fidesz-backed mayor once again, declined an interview request“`text
The construction of Europe’s largest electric vehicle battery factory near Debrecen in eastern Hungary is a significant endeavor. Spearheaded by China’s Contemporary Amperex Technology Co. Ltd. (CATL), this project symbolizes Hungary’s commitment to thriving in Europe’s green transition. Hungary ranks among the global leaders in per capita battery production acceleration.
However, alongside the economic benefits, concerns have been raised by environmental activists, community leaders, and political opponents regarding the potential costs of this ambitious plan. Critics argue that the government, which exercises control over various aspects of Hungarian society, has disregarded these concerns while pursuing its future rule.
The collaboration between CATL and Mercedes-Benz AG in building a $7.8 billion facility is hailed as Hungary’s most significant foreign direct investment to date. Two other battery suppliers are also constructing plants in the vicinity, and another Chinese firm, EVE Energy Co. Ltd., is establishing its facility next to BMW AG’s newly built factory.
Several concerns have emerged in relation to these developments, including the potential loss of valuable agricultural land, strain on water and energy resources, and questions surrounding the proper disposal of used batteries. Moreover, there is apprehension about the possibility of accidents in factories dealing with hazardous materials like lithium.
Town hall meetings discussing these battery-related investments have often turned into heated arguments, even in areas traditionally aligned with Prime Minister Viktor Orban’s ruling Fidesz party. Some individuals have labeled local officials as “traitors.” In response to the outcry, the government has amended laws to remove the requirement of in-person consultations.
Zoltan Timar, the Fidesz mayor of Mikepercs, the suburb closest to the CATL plant, expressed the sentiment shared by many: “Nobody asked us if we wanted this plant.” He emphasized the local apprehension regarding the handling of hazardous substances and the fear it has instilled in people.
CATL claims to possess the necessary expertise to ensure that no pollution is released into the air or water. The company also expresses willingness to collaborate with local authorities to prevent any potential contamination outside the plant.
Nonetheless, the anxiety voiced by Timar is echoed throughout various Hungarian communities. Over a dozen interviews conducted with residents, officials, and environmental groups reveal that the battery boom has left virtually no corner of the country untouched.
These tensions underscore the complexities of embracing green initiatives. While electric vehicles are celebrated as a means of reducing emissions and combating climate change, critics argue that local environmental costs are being disregarded in favor of economic gains.
Hungary currently houses six battery plants that are either operational or under construction. Additionally, approximately two dozen other companies involved in the production chain have established a presence in the country.
The first battery plant, converted from a plasma screen factory, opened in Göd, north of Budapest on the banks of the Danube River, in 2017. Concerns regarding noise pollution and alleged water contamination were raised by residents living nearby. Despite years of complaints, both the government and Samsung SDI, the South Korean conglomerate operating the plant, continued to expand the facility.
Julianna Lam Palla, a teacher in Göd, reported a foul odor resembling “rotten fish” emanating from her tap water. Although she lacked concrete evidence linking it to the battery plant, her experiences of being ignored by local officials prompted her decision to relocate. Lam Palla expressed frustration, stating, “There are so many questions, so much anger and disillusionment.”
The situation worsened when an opposition party gained control of the local municipality in 2019 and promised to investigate claims of environmental damage. In response, Orban’s government diverted the factory’s lucrative business tax receipts away from Göd to neighboring areas.
Activists took matters into their own hands by conducting pollution measurements, which revealed the presence of N-methyl-2-pyrrolidone (NMP), a commonly used solvent in battery cathode electrode manufacturing, in wells.
Zsuzsa Bodnar, a vice president of the local environmental group Göd-ÉRT, asserted, “We don’t fear that they’re polluting; we know they are.” She expressed frustration with authorities’ refusal to conduct tests and acknowledge their findings.
A study published in Scientific Reports this year indicated the presence of lithium in tap water across Hungary’s 19 counties, although the quantities were not deemed hazardous to human health.
After five years of operation, Samsung SDI is now conducting a comprehensive environmental impact study. The company has applied for a pollution prevention and control permit, given that its activities have reached levels requiring such measures.
Samsung SDI stated that it is making continuous efforts to address environmental concerns in Göd. The company collaborates closely with Hungarian authorities and civil groups, conducting water tests to affirm the absence of NMP or any other harmful substances in the water and air.
The municipality of Göd, currently led by a Fidesz-backed mayor once again, declined an interview request.
Orban’s political decision
The EU has set a deadline of 2035 to discontinue the sale of new petrol and diesel cars, compelling manufacturers to transition to electric vehicles. Factories that fail to adapt risk closure. This circumstance has increased Hungary’s appeal, attracting primarily Chinese and South Korean battery manufacturers. By locating their plants in Hungary, these manufacturers can be in close proximity to their largest customers within the world’s largest trading bloc.
Andrea Elteto, a researcher at the World Economy Institute in Budapest, remarks, “Battery plants have quickly become a defining feature of Hungary’s economy, but they also represent a political choice.” These plants align with Orban’s objective of bridging the gap between East and West, with the hope that the benefiting companies will contribute to his sustained power.
The CATL plant in Debrecen will be seven times larger than the Chinese company’s only other European factory, located in Germany. The company expects production to commence within three years. Laszlo Papp, the mayor of Debrecen, describes his region as “where the union between the western European car sector and the battery industry is being solidified.”
However, residents have expressed concerns about the cost of these developments. Battery plants require substantial amounts of water for cooling purposes, and unlike most other battery plants in land-locked Hungary, Debrecen lacks a nearby large river or lake.
Papp asserts that the city has conducted exhaustive assessments, demonstrating that it will not run out of water for the plants or its residents. However, a local study conducted by the regional water works suggests otherwise, predicting that the city’s water resources may be strained to their limits.
Peter Kaderjak, the head of Hungary’s battery lobby group and a former high-ranking energy official in Orban’s previous government, acknowledges the environmental risks. He suggests that the government should even fund monitoring stations where demanded by locals. However, Kaderjak emphasizes that local communities must also strive to understand the economic aspects of these endeavors.
“The objective is not to make Hungary the global leader in battery production,” says Kaderjak, who assisted Orban in establishing the ruling Fidesz party in the late 1980s during the final stages of communism. “This will benefit Hungary’s economy only if it is environmentally sustainable and if communities feel that they gain more than they lose.”
There are indications of a changing approach. Last month, Hungarian authorities suspended the operations of South Korean battery recycling company SungEel Hitech Co. Ltd due to several violations that jeopardized the safe functioning of the plant. New investors are now required to conduct environmental impact studies.
In Debrecen, the city is constructing air and water monitoring stations for early detection of potential contamination, a measure that CATL welcomes, as stated in their written response to inquiries.
Nevertheless, activists remain skeptical. Next to the wooden cabins that vacationers rent along the Danube near Göd, representatives from approximately twelve environmental groups from across Hungary gathered for the first time in August. Their purpose was to learn from the veterans in Göd and unite their efforts.
“We understand that we cannot prevent the world’s largest battery manufacturers,” asserts activist Bodnar. “However, if this matter is of such importance to the government, then we also demand a say in the formulation of legal, environmental, and safety regulations. We refuse to be disregarded.”
