South Korean company Solus Advanced Materials has announced a contract to supply copper foil from its Hungarian factory to the European plant of Chinese battery manufacturer CATL,the Yonhap News Agency reported on Monday.This cooperation underscores the mutual benefits and opportunities that electric vehicle(EV)collaboration between China and Europe offers to international businesses.
In recent years,CATL has deepened its collaboration with Europe.In December 2024,CATL and Stellantis announced a joint investment of 4.1 billion euros($4.68 billion)to establish a battery factory in Spain.Two years earlier,in 2022,CATL committed to investing 7.34 billion euros in constructing a 100 gigawatt-hour battery plant in Debrecen,Hungary.
CATL represents just the tip of the iceberg in the China-Europe EV collaboration.Chinese automakers,including BYD and NIO,are entering the European market with a commitment that extends beyond selling cars;they are also establishing research and development centers and actively participating in the development of charging infrastructure and after-sales service networks,thereby creating numerous jobs.At the same time,European automakers and suppliers are engaging in investment and technological collaboration with their Chinese counterparts,fostering two-way cooperation across industry and supply chains.
The collaboration around EVs between China and Europe is providing opportunities for multinational companies within the industry.One such example is Solus Advanced Materials.Kwak Keun-man,CEO of Solus Advanced Materials,was quoted by Business Korea as saying that"through this new partnership,we will further accelerate copper foil technology innovation and actively cooperate with CATL to stabilize their local supply chain in Europe."
In recent years,Hungary has become increasingly attractive to automakers and automotive supply chain companies amid its enhanced cooperation with Chinese EV firms.According to Business Korea,Solus Advanced Materials operates the sole copper foil production plant in Europe,located in Hungary.
The auto sector has become a significant driver of Hungary's exports,generating nearly 21 percent of the country's total export value.More than 700 companies employing a total of 100,000 people are active in the sector,according to official data.In 2024,the auto industry,Hungary's biggest manufacturing sector,accounted for about 26 percent of Hungary's total manufacturing output,highlighting its substantial contribution to the nation's industrial sector,Daily News Hungary reported.
Hungary offers a perspective on the real story of EV cooperation between China and Europe.The country views Chinese EV technology as an opportunity and is proactive in strengthening collaboration with the Chinese EV industry chain.These partnerships not only provide opportunities for international businesses but also bolster Hungary's automotive sector in various ways,thereby supporting the country's economy and exports.From this perspective,Hungary's EV collaboration showcases the mutually beneficial interactions among China,Europe and the broader international business community.
Recently,the EV sector relationship between China and Europe has experienced some friction.However,real stories from the industry reveal that the advancement of the EV sector necessitates mutual cooperation.Some European officials and industry stakeholders have recognized this,and their calls for collaboration should be heeded.
Minister for National Economy Marton Nagy in Hungary emphasized that collaboration,rather than protectionism,is the constructive path forward,particularly in the EV sector.This sentiment is echoed by some European industry leaders who recognize the potential of such partnerships to drive innovation and economic growth.Marcus Bollig,managing director of the products and value creation division at German Association of the Automotive Industry,pointed out China's significance as an important market and an innovation hub for German automakers,stressing the role of Chinese-European interdependence in steering the automotive industry toward sustainable mobility,according to the Xinhua News Agency.
Despite some friction,there remain large opportunities and untapped potential for cooperation between China and Europe in the EV sector.If European stakeholders can effectively manage these frictions and strengthen collaboration with China in this field,such partnerships could yield further benefits for both regions and multinational corporations.
