One of the most significant Asian investments in Hungary over the past year is the cathode material factory of Bamo Technology Hungary Kft., the local subsidiary of Huayou Cobalt, a leading Chinese high-tech company. The EUR 1.3 billion greenfield investment in the northern Hungarian town of Ács is a significant step in solidifying Hungary’s role in the European battery industry.
Beyond its economic impact, the investment is set to create 900 new jobs while also contributing to Hungary’s green transition. The plant will produce materials for the next generation of electric vehicle (EV) batteries, including those used in BMW’s new manufacturing facility in Debrecen.
“Hungary acts as a bridge between Western car manufacturers and Asian battery producers, in line with its policy of economic connectivity and economic neutrality,” explains Isván Joó, the CEO of Hipa.
As Asian economies look to expand their footprint in Europe, Hungary has emerged as a preferred destination, offering access to the entire EU market, a stable business climate, and advanced infrastructure.
One of the most compelling success stories is the collaboration between Chinese battery giant CATL and German automaker Mercedes-Benz. CATL’s new factory in Debrecen will produce next-generation battery cells for Mercedes-Benz’s CO₂-neutral electric vehicles, aligning with the carmaker’s local-to-local procurement strategy.
The Hungarian Government’s strategic foresight in recognizing the importance of electrification and the energy transition has been instrumental in attracting Asian investment, Hipa says.
It is undeniable that Hungary’s approach to investment promotion has yielded remarkable results, particularly in attracting capital from Asia. In 2023, Hungary secured the highest amount of Chinese FDI in Europe, some 44% of the total, surpassing Germany, France, and the United Kingdom combined. This trend continued last year, reinforcing Hungary’s status as China’s strategic partner.
“It is clear that Chinese capital and technology are key to restoring Europe’s competitiveness and many market players have recognised the potential of working with Chinese investors,” Joó notes.
Beyond China, South Korea and Japan have also increased their investment footprint in Hungary. South Korean firms are investing heavily in battery technology, while Japanese companies are expanding their presence in high-tech manufacturing and precision engineering. These investments further diversify Hungary’s industrial base, ensuring long-term technological development and economic resilience.
The “Eastern Opening” policy, which the government introduced more than a decade ago when the Fidesz party of Prime Minister Viktor Orbán was returned to power in 2010 with a landslide victory, has played a pivotal role in this success. Countries engaged in this strategy accounted for EUR 8.2 bln in investment in 2024, representing some 80% of the total EUR 10.3 bln FDI volume facilitated by Hipa.
By continuously strengthening ties with Asia, Hungary is ensuring sustained economic growth and industrial transformation. To that end, Hipa says it remains committed to deepening cooperation with Asia, viewing the “Eastern Opening” as only the beginning of a long-term success story. The next step in this strategy is to expand into new industries while maintaining Hungary’s strong position in electromobility and automotive manufacturing.
A defining milestone in this vision is the decision of Build Your Dreams to establish its first European car factory in Szeged, the university city 175 km southeast of Budapest, by road. This landmark investment by China’s largest EV manufacturer is a game-changer, reinforcing Hungary’s status as a central hub for electric vehicle production in Europe. BYD’s presence is expected to create thousands of new jobs and further integrate Hungary into the global EV supply chain.
Beyond electromobility, Hungary is actively working to diversify its Asian investment portfolio into ICT, biotechnology, medical equipment manufacturing, robotics, and automation. Completing the battery value chain is another priority, particularly through the development of anode production.
Hungary’s strategic location at the heart of Europe, combined with its stability and economic consistency, has proven to be a major asset in an era of geopolitical uncertainty. As global trade dynamics shift and the EU implements new regulatory frameworks, the agency notes that Hungary remains committed to economic neutrality and a balanced approach to foreign investment.
According to Hipa, Hungary’s remarkable success in attracting and integrating Asian investments is a direct result of its long-term vision, competitive business environment, and commitment to fostering innovation. Furthermore, Hipa’s VIP investor support system, which provides tailored consultancy, project management, and sector-specific assistance, ensures that Hungary remains an attractive and reliable partner for Asian firms looking to establish and expand their operations in Europe.
“The future of European mobility lies in innovation and cooperation, not in tariffs,” according to Joó.
This article was first published in the Budapest Business Journal print issue of March 21, 2025.
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