(Yicai Global) June 9 -- Eve Energy’s shares fell after the leading Chinese lithium battery maker revealed that its much-anticipated plant in Hungary will cost EUR1.3 billion (USD1.4 billion).

After dropping by as much as 3 percent at one point, Eve Energy [SHE: 300014] ended today 1.8 percent lower at CNY58.62 (USD8.17) in Shanghai. Its shares have fallen 33 percent since the start of the year.

The Hungarian plant that will produce large cylinder cells for electric passenger cars will cost EUR1.3 billion, the Huizhou-based firm said in a statement yesterday. The project, to be run by a local unit of Eve Energy, will be built in phases over four years.

Eve Energy announced in March last year that it had reached a preliminary investment agreement with the government of Debrecen in Hungary to build its first European plant there. Last month, it said it had penned a deal to buy 450,000 square meters of land in the city for EUR12.9 million (USD14.2 million).

According to a Reuters report published last month after Eve Energy’s announcement, the plant aims to fulfill German auto giant BMW's lithium battery needs. The media outlet also said that the plant would cost EUR1 billion.

Many Chinese companies in the power battery industry have unveiled plans to invest in Europe because of increasing demand for electric cars in the region.

Contemporary Amperex Technology, the world’s largest battery maker, announced last August plans to set up a base in Debrecen with a 100 gigawatt-hours annual capacity and total investment of EUR7.3 billion. Construction work will start this year and trial operations will begin next year.

Envision AESC said in June last year that it will build a power battery plant with an annual capacity of 50 GWh in Navalmoral de la Mata, Spain that is scheduled to come on stream in 2025.

Svolt Energy Technology, an affiliate of Chinese carmaker Great Wall Motor, said in September that it will build a battery cell plant in Brandenburg, Germany. The products will be sold in Europe.

Editor: Futura Costaglione