The world’s leading battery maker for electric vehicles announced a year ago that it is building a 100 GWh plant in the city’s industrial park from €7.4bn, the largest green field investment in the country on record, but also one of the largest projects in Europe as well.

The project was followed by a string of other EV-related investments by Chinese manufacturers in Hungary.

These investments are slated to make Hungary a global powerhouse for EV battery manufacturing as the Orban government strives to lessen the dependence on the traditional automotive sector, which accounts for a quarter of industrial output with an 85-90% export weight.

The plant to be built in Debrecen on 221 hectares on fertile land, not far from BMW’s new e-car factory, has triggered public outrage.

NGOs have warned of the extensive water usage and vast energy needs of the plant, in addition to the environmental hazards from the chemicals used. The area is prone to recurring droughts and many fear the safety of underwater basins.

The plant’s annual electricity consumption is set to reach a quarter or a third of the production of Hungary’s sole nuclear power plant in Paks, and the country’s grid is not able to handle that much usage, according to one study.

CATL later said it will set up its own solar park to provide green energy for the new plant. Hungary reportedly offered €800mn in grants, tax breaks, and infrastructural support to the project.

To allay the concerns of locals, city council officials and the representatives of the company held a public hearing in February, which ended in chaos. The government later modified relevant rules, saying that local hearings could be organised without the participation of local leaders.

CATL has probably sought to ease the fears of locals while keeping capacity targets unchanged at 100 GWh, but the plant's energy demand was cut by 25%, its water usage by 10% and the size of the plant was cut by 13% to 135,000 sqm.

The Chinese company has requested the relevant authorities to review the previously submitted plans and ensure that the official permits reflect the reduced energy, water, and space requirements.

Previously, the company estimated its daily water demand to reach 3,400 cm, which has been cut to 3,075 cm. The cooling towers will account for 70% of the total water usage.

The Chinese firm promised to adhere to local and EU regulations during the construction and operation of the plant.

CATL’s Hungarian factory is the company’s second in Europe. It will be three times larger than the German factory in Thuringia, while production capacity will be seven-fold.

The factory would employ around 9,000 people, three times more than the German plant when it reaches full capacity. Labour unions and opposition parties say there will be no local workforce available to fill up the posts and CATL, just as other EV battery makers, will bring staff from Asia.