The project, with an investment of 7.34 billion euros and a planned capacity of 100 GWh, will start construction of its first building within the year.

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CATL signed a land pre-purchase agreement with the Hungarian city of Debrecen on September 5, marking the official launch of its factory project in the country, the world's largest power battery maker said Monday on Weibo.

The plant is located on a 221-hectare site in Debrecen's southern industrial park, and groundbreaking for the first building will take place within the year, CATL said.

The project will have a planned investment of 7.34 billion euros and has a planned capacity of 100 GWh, CATL said, without providing further details.

Separately, CATL Chairman Robin Zeng was quoted by Xinhua News Agency today as saying that the plant project is a major step in improving CATL's global strategy and that the company is committed to contributing to the local community and the Hungarian electric vehicle industry.

The investment is one of the top five Green Field Investments in Europe in 10 years and the largest of its kind in Hungary's history, making it a significant one for the country, the report said, citing Péter Szijjártó, Minister of Foreign Affairs and Trade of Hungary.

CATL announced its plans to build a battery production site in Hungary on August 12, after announced in late July the construction of a battery swap station plant in the European country.

The total construction period for the project will take no more than 64 months, with the construction of the first building to begin this year after approval, CATL said in a stock exchange announcement at the time.

The plant will be CATL's second in Europe, in addition to its German facility, and will produce cells and modules for European automakers, the company said in a post on its WeChat account.

The plant's proximity to customers' vehicle assembly plants, including Mercedes-Benz, BMW, Stellantis and Volkswagen, will allow CATL to better respond to the needs of the European market, the post said.

Mercedes-Benz will be the new plant's first and largest customer at the initial capacity scale, Markus Schafer, Mercedes' Chief Technology Officer, said, according to the CATL WeChat post.

Notably, on July 29, NIO announced that its NIO Power Europe plant in Pest, Hungary, will be operational in September. The plant is located about 220 kilometers from CATL's facility.

CATL continued to rank No. 1 globally with a 33.5 percent share of power battery installations in July at 13.3 GWh, according to data released Monday by Seoul-based SNE Research.

BYD overtakes LG Energy Solution to become world's No. 2 battery maker in July-CnEVPost

NIO's plant in Hungary for swap stations to start operation in September