On Tuesday morning, Zsolt Tárkányi, a member of the National Assembly from TISZA, published seven pages of documents on social media regarding the agreement signed for the Chinese battery factory in Debrecen (eastern Hungary), Világgazdaság reported.
The tone of the post suggests that this politician strongly disapproves of what the Orbán government promised the world’s largest battery manufacturer to persuade it to build its next plant in Hungary. However, upon reviewing the letter of intent, no glaringly unusual promises can be found in it; rather, it can be concluded that the previous FIDESZ-KDNP-led cabinet sought to make a good offer to the Chinese side.
This is, of course, no coincidence, since when this agreement was reached, CATL was considering a massive investment
totaling 7.3 billion euros to build a battery manufacturing plant with an annual capacity of 100 GWh.
The Hungarian government, for its part, expressed its intention to support the implementation of the planned investment in Hungary at the priority site in Debrecen that CATL was considering. This is because the Chinese side had previously considered Hungary as a potential investment location after deciding to expand its manufacturing presence outside of China.
The fact that CATL ultimately chose Debrecen was by no means a foregone conclusion, as several European countries—including Western ones—were competing for the project.
In other words, the Orbán government’s proposal deserves to be evaluated from this perspective: it fought hard to win the Chinese company’s favor in a highly competitive situation, securing a commitment to invest more than 2,600 billion forints here.
Hungary may have caught the attention of the Chinese because, by that time, it had already become one of the most attractive destinations for direct foreign investment (FDI) by major battery manufacturers. According to the Orbán government’s view, the related large-scale investment projects contribute significantly to the country’s economic development.
A production line at Chinese battery manufacturer CATL’s plant in Debrecen on October 1, 2026. Photo: MTI/Zsolt Czeglédi
In addition, they have a substantial impact on long-term employment, technology transfer, and cluster effects, as well as stimulating industrial and technological development.
It is a fact that, thanks to FDI, Hungary’s innovation performance has improved rapidly and significantly in recent years. Zsolt Tárkányi, however, focuses not on this but on the fact that the Chinese investment was granted VIP status. In reality, though, this simply refers to a completely standard category.
The point is that with the establishment of the Debrecen Southern Industrial Park in 2015, Debrecen committed itself to attracting future industrial investments to boost economic growth in the region and in Hungary.
To support the development of the Industrial Park, the Orbán government designated existing and future investments in the Industrial Park as projects of priority importance to the Hungarian economy. This is what the “VIP Status” referred to in the recently published cooperation agreement signifies.
The Orbán government was aware that CATL’s potential investment and other industrial developments in the priority region would pose infrastructure challenges.
Therefore, as a prerequisite, it ensured that adequate public utilities would be developed and made available to all investments in the region.
It decided to provide funding for the existing utility infrastructure and the utility development program in the area where CATL plans to carry out its project. The Chinese side had already indicated its potential utility needs—including water, gas, wastewater, and electricity—in this document, but Zsolt Tárkányi redacted these details.
It was also put in writing that the Hungarian government would do everything in its power to ensure that airlines establish regular flights between Debrecen and China, either directly or with layovers in Türkiye or the United Arab Emirates.
As is the case with many other major investment projects, the government at the time would also provide other (including non-financial) support in connection with the CATL plant, such as
- Administrative support to the extent permitted by law
- Priority handling of visa matters
- Support for the potential involvement of Chinese contractors and suppliers
- Regular updates on changes to legislation, policies, and, in particular, opportunities to apply for support in Hungary and at the EU level.
Tárkányi took particular issue with the fact that CATL had been promised tax breaks on several counts. Specifically, the development tax credit would have entailed a reduction of up to 80% of the corporate income tax (CIT) liability for a maximum of 13 tax years, subject to European Union approval once the national threshold was exceeded.
However, based on the document, cash grants for innovation would also be available for innovation projects, covering up to 25% of the costs.
At the same time, it is important to emphasize that the published letter of intent cannot be considered legally binding.
It also states that any transaction between the parties remains subject to the conclusion of a final, written, and signed agreement(s), as well as approval by CATL’s general meeting, the relevant Chinese government authorities, the Hungarian government, and the European Commission.
Via Vg.hu; Featured photo: MTI/Czeglédi Zsolt
The post Documents Show CATL Chose Debrecen after Fierce Competition appeared first on Hungary Today.
Documents Show CATL Chose Debrecen after Fierce Competition 2026
IUSTITIA.BG – Investigations 2009-2026 2026-10-07 15:03:22
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