Hungarian government outlines extensive incentive package for CATL's Debrecen battery plant
State Secretary Tárkányi Zsolt disclosed a revised draft of the 2022 investment intent with CATL, detailing tax breaks, grants and regulatory support for the Debrecen factory.
In a Facebook post, State Secretary Tárkányi Zsolt made public a less-redacted version of the 2022 intent letter between the Hungarian government and Contemporary Amperex Technology Limited (CATL). The draft outlines several financial incentives, such as non-repayable grants covering up to a portion of innovation costs, a six-year tax credit of up to €15 million for energy-saving projects, and subsidies covering half of training expenses, capped at €2 million.
It also proposes cuts to the local business tax and a municipal grant of up to €200 000. Beyond monetary aid, officials indicated they could allow CATL to conduct transactions in Chinese yuan and would give priority to work-permit and visa requests for the plant’s workforce. The agreement, labeled a "VIP" project in August 2022, also calls for a steering committee involving the government, the Hungarian Investment Promotion Agency and Debrecen’s local authorities.
