BMW assembles its batteries at three locations in Germany, its Spartanburg site in the United States and its Shenyang plant in China, while in Europe it sources battery cells from Chinese battery manufacturers CATL and EVE.
In Debrecen, battery cells are built into a metal housing, which is integrated into the vehicle’s underbody.
Construction of a 140,000-square-meter battery assembly plant has already begun.
Separately, CATL previously signed a €7.3 billion contract for a second factory to manufacture battery cells in Europe, making Hungary an increasingly important hub for EV manufacturing in Europe.
The investment, the largest in the country’s history, will supply nearby plants to a range of automakers, including Mercedes-Benz and Stellatis.
CATL is already a supplier to BMW from its factory in Erfurt, Germany.
BMW has previously said it will spend more than 1 billion euros on the Debrecen plant, which will produce 150,000 cars a year. The plant will be his first new European plant in over 20 years for an automaker.
Reuters contributed to this report