Chinese Battery Giant Faces Backlash in Hungary as Locals Fight for Their Future

A Chinese battery plant, owned by Contemporary Amperex Technology Co. Limited (CATL), is rapidly taking shape near Debrecen, Hungary, despite growing opposition from locals and environmental experts. Residents are deeply concerned about the potential environmental damage, resource depletion, and foreign influence associated with the sprawling 550-acre facility.

The project sparked widespread backlash when it was announced in August 2022. A survey conducted by independent pollster 21 Kutatóközpont revealed that 62% of Debrecen’s 200,000 residents were opposed to the plant. Concerns ranged from potential air pollution and water contamination to the exploitation of scarce resources and the increasing influence of foreign investment.

Local activists and opposition political parties organized large-scale protests, some attracting thousands of participants. László Nándor Horváth, a full-time father and activist living just two kilometers from the construction site, sued CATL in March 2023. His legal challenge resulted in a court decision to recall CATL’s disaster management license last November. Despite this setback and the widespread opposition, construction continues, and CATL has even revealed plans to expand the facility, adding an assembly line.

The Hungarian government, however, remains steadfast in its support for the project, viewing battery production as a key driver of economic growth. They have invested over €2.5 billion in subsidies and infrastructure development to facilitate the plant’s construction. Dóra Győrffy, an economist and university professor, highlights the government’s belief that battery production offers risk-free investment opportunities with a continuously increasing supply. She argues that this approach overlooks the potential downsides and the need for a more strategic approach to economic development.

Attila Holoda, managing director of independent advisory firm Aurora Energy, emphasizes the strategic mistakes of attracting energy-intensive industries like battery production to a country that lacks a competitive advantage. He points out the factory’s significant energy demands, the need for a skilled workforce that is scarce in the region, and the potential strain on local infrastructure. CATL is already importing workers from Asia and will need a workforce of nearly 10,000 for full production, according to the company.

Mikepércs, the nearest town to the construction site, with a population of 5,000, is already experiencing power cuts due to the project’s energy demands. The town, once a sleepy suburb of Debrecen, has seen an influx of young families attracted by affordable homes over the last decade. Éva Kozma, head of the activist group Mikepércs Mothers for the Environment Association (MIAKÖ), expresses her concern for the town’s future, fearing that the factory will transform their neighborhood into a polluted wasteland.

MIAKÖ has set up air quality monitors that have already detected harmful levels of fine particulates (PM2.5) from a single plant supplying CATL’s battery production, starting test operations in February 2024. The levels of PM2.5, a major contributor to air pollution and respiratory illnesses, have reached double the EU recommendation in the vicinity of the factory, prompting residents to keep their windows closed.

Kozma, a chemist by education, highlights the lack of transparency surrounding the materials used in CATL’s battery production, assembly, and disassembly processes. Greenpeace Hungary, while supportive of the transition to electric vehicles, condemns the current manufacturing practices in Hungary as unacceptable and lacking in green credentials.

Gergely Simon, a chemical expert at Greenpeace Hungary, points to the presence of toxic solvent MNP, linked to foetal harm and stillbirth, in groundwater near other Hungarian battery plants. The Hungarian government currently classifies these solvents as toxic, not posing a risk to unborn children, allowing for their use in smaller quantities compared to EU regulations. Simon attributes this discrepancy to the government’s creative interpretation of regulations, creating a competitive advantage for Hungary.

Judit Szemán, who previously grew organic vegetables for sale near the plant, is another resident facing the consequences of the project. Her family has been disturbed by the noise and light pollution from the construction site, while 700 hectares of fertile land have been transformed into industrial areas. Despite repeated offers from investors for their property, the family is determined to stay, hoping for a favorable court ruling on their lawsuit against CATL.

CATL maintains that it has no plans to expand its Debrecen facility and assures that its closed production technology adheres to all national and EU environmental regulations. The company emphasizes its commitment to sustainable practices and continuous monitoring of emissions.

However, the residents’ concerns remain, with many fearing that their voices are being ignored. They see the project as a dangerous precedent, allowing for unchecked industrial expansion in Hungary without proper scrutiny. The conflict highlights the complex and often conflicting priorities surrounding economic development, environmental protection, and community well-being, challenging the Hungarian government and the global battery industry to find a sustainable path forward.

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