Chinese EV battery manufacturing in Hungary: helping or hindering the green transition?

Author: Ágnes Szunomár

In: Oxford Energy Forum, Issue 144, April 2025. p. 51-54.

Abstract

Policymakers are pursuing EV adoption as the automotive technology of the future due to its potential to reduce greenhouse gas emissions and dependence on fossil fuels. In line with the EU climate goals, including the 2035 zero-emission targets, the EU is investing hundreds of billions of euros into electromobility: pushing car manufacturers to produce EVs, boosting sales of these vehicles, and supporting the installation of a million charging stations. Although the EU has been investigating whether Chinese EV companies have benefited from illegal state subsidies, it is hard to imagine that the region’s ambitious EV strategy could be carried out without Chinese companies currently leading the EV industry—and, crucially, without the batteries produced by Chinese players. As a result, despite remaining tensions, Chinese EV companies are gaining a foothold in European markets to sell EVs and to supply European EV manufacturers with locally manufactured EV batteries. Hungary—host to most of the Chinese EV battery projects in Europe—exemplifies the emerging role of China, and presents an exceptional case study for how Chinese firms, technologies, and supply chains help and hinder Europe’s green transition.