(Yicai Global) July 20 -- Chinese battery housing and accessory supplier Ningbo Zhenyu Technology plans to invest EUR58.7 million (USD65.9 million) to construct a factory in Hungary that makes the precision structural parts used in electric car batteries to better serve its European customers.

The new plant, which will be located in Debrecan, will start construction next month and should be up and running by the end of 2027, the Ningbo, eastern Zhejiang province-based company said yesterday. No mention of the production capacity and expected annual revenue was made.

Hungary has become an investment hotspot for Chinese battery developers and a number of industry leaders, such as Contemporary Amperex Technology, BYD and EVE Lithium, have all built plants in the country. As a result, their main suppliers are following suit.

The facility will provide Zhenyu’s customers as well as potential clients who operate factories in Central Europe with faster and better services, said Zhenyu, which counts Ningde southeastern Fujian province based CATL and EVE Lithium Energy among its customers. It will also expand its global footprint. The project is still pending approval from Chinese and Hungarian authorities.

Zhenyu raked in earnings of CNY3.2 billion (USD450 million) from the sale of precision structural parts of batteries last year, accounting for 56.6 percent of its total revenue, according to the firm’s 2022 financial report.

Zhenyu’s share price [SHE:300953] was trading up 1.1 percent at CNY73.14 (USD10.20) as of 12.30 p.m. China time today.

Editor: Kim Taylor