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BYD Builds Another Battery Factory in Hungary

July 14, 2023
in Technology
BYD Builds Another Battery Factory in Hungary
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On July 13th, BYD plans to establish a battery assembly plant in Hungary with an investment of over ¥200 million (about $28 million). This is BYD’s second factory in the country following the electric bus and truck factory in Hungary. It is reported that the new factory will supply power batteries for Tesla’s Berlin factory.

BYD has recently started recruiting personnel related to its business in Hungary, including positions such as Government Affairs Director and Equipment Engineer. This indicates that its new factory located in the small town of Fót, northern Hungary, is already underway. Previously, Peter Szijjarto, the Hungarian Minister of Foreign Affairs and Trade, announced this news during his visit to Shenzhen at the end of June. He stated that the new factory will not produce batteries but only perform assembly operations with an investment amounting to 10 billion forints.

In 2017, BYD established the first electric bus and truck factory in Europe in Hungary. It has already delivered the first pure electric bus to Volánbusz, the largest local public transportation operator. In the first half of this year, BYD accounted for approximately 42% of newly deployed circulating buses in the local market, enjoying an absolute leading advantage in the Hungarian bus market.

SEE ALSO: BYD Partners with DiDi’s Brazilian Ride-hailing Platform 99

In addition, BYD has previously reached a power battery supply agreement with Tesla to provide blade batteries for the rear-wheel drive version of Model Y produced at its Berlin factory. According to Miao Wei, Vice Chairman of the Economic Committee of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), as Tesla’s Berlin factory starts production and delivers an increasing number of rear-wheel drive Model Y vehicles equipped with BYD power batteries, BYD’s overseas business in power batteries will experience high growth. Therefore, establishing a battery assembly plant in Hungary will help BYD provide faster and more convenient services to Tesla.

According to the latest data, BYD’s cumulative installed capacity of power batteries in the first half of this year is about 60.25GWh, a year-on-year increase of 77%, indicating that its external supply business for power batteries is continuously strengthening. In addition to Hungary, BYD is also exploring the possibility of establishing vehicle factories in European countries such as France, Spain, and Germany.

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