CATL Shares Fall as Hungary Plant Faces Safety Halt

CATL shares dropped sharply on Wednesday after Hungarian authorities temporarily suspended work in parts of the Chinese battery giant’s Debrecen plant following elevated nickel exposure detected among nine employees.

Hong Kong-listed Contemporary Amperex Technology Co. Ltd. (CATL) shares fell 4.1% to HK$568.00, reaching their lowest level since March 10. The decline was significantly steeper than the roughly 0.9% drop in Hong Kong’s benchmark Hang Seng Index.

The Hajdú-Bihar County Government Office ordered CATL to halt operations in three sections of its Hungary battery plant until identified workplace safety deficiencies are corrected, Caixin reported. Authorities have allowed equipment testing to continue.

The regulatory action followed CATL’s notification that biological monitoring tests had detected elevated nickel exposure among nine workers. A subsequent occupational safety inspection identified shortcomings related to protective equipment provided to employees.

The affected sections include areas used for laser cutting of cathode and anode foils, electrode-foil winding and battery cell drying.

CATL said it is still investigating the source of the nickel exposure. The battery manufacturer has suspended ongoing equipment commissioning in the affected areas and introduced stricter occupational health and safety measures.

According to the company, routine biological exposure monitoring began in early June, while results received in early August revealed elevated nickel levels among the nine employees.

The safety issue comes as CATL prepares to ramp up battery cell production at its major Debrecen facility. In 2022, the company announced plans to invest €7.34 billion in the Hungary plant, which is designed to have annual production capacity of 100 gigawatt-hours for battery cells and modules.

Battery cell production has not yet begun at the facility, which remains in the commissioning and trial-production preparation stage. CATL has, however, already started manufacturing battery modules at the Debrecen site.

The temporary suspension could increase investor attention on CATL’s European expansion and the timeline for bringing its Hungary battery cell operations fully online.