Another Chinese Battery Industry Investment in Hungary

Major electrolyte producer KunlunChem is set to expand the traditional chemical industry in Szolnok with a low-energy factory by an investment exceeding EUR 100 million, according to the Hungarian Investment Promotion Agency (HIPA).

The Chinese company’s greenfield investment builds upon a strong tradition, as the largest chemical plant of the region, the Tiszamenti Vegyiművek was founded in Szolnok nearly 75 years ago, in March 1951. While its primary goal at the time was to supply fertilizers to agriculture, this new chapter in the local chemical industry integrates the city into the realm of sustainable mobility, one of the most promising sectors of the future.

KunlunChem, a developer and manufacturer of lithium-ion battery electrolytes, is establishing its first European base in Hungary. Recognized as one of the top five players in the industry, the company has long-term partnerships with over 30 battery cell manufacturers. From Szolnok, it will supply electrolyte products to the battery plants of CATL and EVE Power in nearby Debrecen.

The EUR 101.6 million investment is guided by HIPA, and will be implemented in two phases, creating 120 new jobs. The facility will cover 40,000 square meters, with an annual production capacity of up to 100,000 tons in the long run. Despite its large-scale output, the plant will operate with exceptionally low energy consumption and require no water for production. The project is closing a gap in Hungary’s electric vehicle supply chain, the statement says.

KunlunChem, which also specializes in digital solutions, has been operating since 2004. Headquartered in Xianghe, near Beijing, the company generated approximately EUR 130 million in revenue last year and employed over 330 people.