CATL's plant in Debrecen. Credit: CATL Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member The cell production project at CATL‘s factory in Hungary has been ordered to temporarily suspend operations due to occupational safety failures related to nickel exposure, according to the government office of Hajdú-Bihar County, as quoted by Caixin. The local government stated on August 31 that CATL must complete all rectifications regarding occupational safety defects before production can officially begin. Currently, regulatory authorities are permitting the company to conduct equipment debugging only. The facility in Debrecen is part of a massive investment of 7.34 billion euros aimed at creating a battery hub with a total planned capacity of 100 GWh for both battery modules and cells. While a module plant with an annual capacity of 5 GWh began production in May 2026, the cell production lines have yet to enter formal mass production. The suspension follows “nickel exposure” incidents during the debugging and trial production phase, where workers inhaled or came into contact with nickel dust exceeding occupational limits. CATL reported that after implementing routine biological exposure monitoring in early June 2026, nine employees were found to have elevated nickel indicators in August. Subsequent inspections by Hungarian regulators between August 11 and 25 revealed insufficient protective equipment in several areas. Consequently, on August 25, authorities ordered the immediate cessation of work in the laser cutting workshops for positive and negative foils, the winding workshops, and the cell drying workshops. The safety crisis comes at a critical juncture. Although the first phase of the cell plant received its production license on August 25, actual operations are expected to be delayed. Furthermore, the application for the second phase’s production license was rejected on August 19 due to incorrect labelling of completed buildings on the general site plan. The disruption is also impacting supply chains. The Hungarian plant primarily serves local factories for Mercedes-Benz and BMW. Reports indicate that CATL is currently sourcing batteries from other plants to maintain supplies for Mercedes-Benz, absorbing the additional costs. BMW’s related production has not yet started and remains unaffected. Beyond safety, CATL is facing increased environmental scrutiny. A Hungarian member of parliament disclosed that the company was fined 10 million forints (31,000 USD) for various breaches of integrated environmental permits. Violations included a lack of proper waste labels, failed hazardous waste signage, and inadequate security controls allowing unauthorised access to the plant. This regulatory tightening is part of a broader policy shift. The Hungarian Ministry of Transport and Investment announced on August 16 that “key investment projects” will no longer enjoy exemptions from environmental, nature conservation, and urban planning regulations. Projects found in violation may be barred from receiving new construction permits for at least six months. CATL, Samsung, and SK-On are among the first targeted by these stricter rules. The shift in oversight follows a political transition in April 2026, when the opposition party defeated the long-standing government of Viktor Orban. The new administration has begun reviewing major investment projects signed under the previous government. BYD’s European headquarters is located in Hungary. CATL is not the only Chinese firm under pressure. In June, the government suspended operations at a plant owned by lithium-ion battery separator manufacturer Semcorp after detecting leaking metal elements in local groundwater. Similarly, BYD has been fined 10 million forints (31,000 USD) over allegations of dumping contaminated soil into farmland. BYD’s plant production, originally slated for Q4 2025, has reportedly been pushed back to Q4 2026. Semcorp’s factory in Hungary. Credit: Semcorp Most important news in your inbox. Recaps · scheduled All you need, in one email. Instant alerts · real-time Ping me when an article goes live. 0 of 27 topics selected Bundle into one email per day — instead of one email per article No spam · Unsubscribe with one click · Change settings anytime