China’s Sunwoda Electronic plans to build a power battery factory in Hungary for electric vehicles, with initial investment of up to 1.96 billion yuan ($274.71 million), as Chinese battery makers expand in the European market.
The money will be used for purposes including land purchase, project construction and equipment procurement, Sunwoda said in a filing to the Shenzhen Stock Exchange on Thursday.
Sunwoda, a smaller player among Chinese battery makers, counts Xpeng, Mercedes and Guangzhou Automobile Group among its biggest clients. Its move comes as Chinese battery suppliers shake up Europe’s e-mobility supply chains by setting themselves up on the continent.
Chinese market leader Contemporary Amperex Technology (CATL) is building a 7.3 billion euro ($8.13 billion) battery plant, also in Hungary, following its first European production site in Germany.
EVE Energy said in June that it would set up a plant in Hungary with investment of up to 9.97 billion yuan to make large cylinder batteries.
The company also announced on Thursday that it is planning a production base in Thailand with Thai energy company Energy Absolute.