9 December 2025

China vs. Korea: Who Is Winning the Battery Battle in Hungary?

Viktor Eszterhai and Zoltán Vörös

Hungary has become one of the clearest windows into the unstoppable advance of Chinese competitiveness in the global battery industry. What began as a Korean-led success story is now transforming into a live demonstration of how quickly – and how decisively – Chinese firms can reshape high-tech markets. Billions in new investments, massive gigafactory projects, and rapid technological expansion are redefining the balance of power in Europe’s EV sector.

For Hungary, this shift is both a monumental opportunity and a growing economic risk. The country set out to build a world-class battery hub, hoping the sector would become a new engine of growth. Instead, the landscape now shows a more complex reality: Chinese capacity is surging, while the Korean pioneers who first anchored the industry are seeing production fall, utilization drop, and orders slip away.

With a long-standing automotive industry accounting for a third of industrial output, the government views the shift to electric vehicles not as a challenge, but as an opportunity to secure and modernize its critical car manufacturing base. Batteries are seen as indispensable to this future, and Hungary aims to become a leading European hub for EV production and the full associated supply chain. To achieve this, the country is localizing every part of the battery ecosystem – cathodes, anodes, separators, and assembly lines – while actively inviting global technology leaders to establish operations on Hungarian soil.


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