China's Xinzhi to build $120m EV parts plant in Hungary

China's Xinzhi Motor Co. has announced plans to build a $120 million electric vehicle parts factory in Hungary, promising nearly 900 jobs for the small town of Hatvan.

The plant will make components for EVs, such as motor starters and rotors, and supply automakers across Europe, including Tesla and Volkswagen.

"This factory will be important," said local resident Zsolt. "People here need jobs, but there are few employers."

Magdalena, another Hatvan resident, said many locals have to commute far for work. "I think it will be good for the people here."

The company's announcement marks the latest in a wave of major Chinese investments in Hungary's EV sector.

Battery giant CATL began work on a large facility in Debrecen in 2022. Production is expected to start this year.

In Szeged, BYD is building its first European car factory. The site aims to produce 300,000 vehicles annually, with the first cars to roll out in November.

Green tech supply chain 

Hungary's government said the Xinzhi investment aligns with its push for electric mobility and strengthens its role in the green tech supply chain.

"Hungary has a long history of car manufacturing," said Levente Horváth, director of the Eurasia Center. "All of the German car makers are in Hungary and also from Asia, Suzuki came in the 1990s, so that is why Chinese companies are coming to Hungary."

Horváth also cited Hungary's shift in foreign investment. "If we look at the FDI of Hungary 10 years ago, Asian countries were about 15 percent. Now they are reaching 30 percent," he said.

The project is part of Hungary's "Opening to the East" strategy, launched 15 years ago to diversify foreign trade and attract investors beyond Europe.

The new Xinzhi site will join a growing list of international firms operating in Hatvan's industrial park, already home to companies like Bosch.

While the project promises high-tech jobs, including 30 engineering roles, experts say the broader impact will be felt in Hungary's future.

The new Xinzhi facility in Hatvan will produce EV components, including motor starters and rotors, for automakers like Tesla and Volkswagen. Experts say this will strengthen Hungary's role in the green mobility supply chain. Construction is expected to begin later this year.