told Rest of World that they are not against the role of EVs in combating climate change, but are troubled by what they view as the government’s opaque decision-making that has silenced public input. “Even if [the plant] would have worked in a safe way … in recent weeks it has caused unrest among the [town’s] population and raised significant public debates and tension.” The EV investment boom of recent years boosted Budapest and Beijing’s relationship, and led to China becoming Hungary’s top foreign investor in 2023. Almost half of all Chinese foreign direct investment in Europe now flows to Hungary. The country’s proximity to EU markets means easier access for Chinese companies. CATL’s Hungarian gigafactory plans to supply batteries to carmakers including BMW and Mercedes-Benz, according to partnership agreements. In the past, widespread protests and lawsuits against South Korean factories effectively pressured the government to hold companies accountable. Local residents formed grassroots networks including environmental nonprofits, legally challenged companies’ operational permits in court, and voted in new political leaders who vowed to protect the environment. Authorities fined Samsung SDI 56 times to the tune of nearly $550,000 from 2018 to February 2024, and temporarily shut down SungEel’s operations. Now, Hungarians are using a civic toolkit honed by their experiences with South Korean plants — a mix of legal action, civic protest, and small-town political wrangling — to push back against the new Chinese factories roaring to life in the Hungarian countryside. The Miakö group has been organizing demonstrations and hosting public meetings in Mikepércs. The Miakö group of Mikepércs mothers has been organizing demonstrations and hosting public meetings with technical experts to help citizens learn more about EV battery technology and production. Last year, members and town residents launched lawsuits against Hungarian authorities who had issued safety and environmental permits for CATL to operate. The court included CATL as a defendant, allowing the company to present its arguments. The case is currently stalled. In March, the case’s presiding judge ruled that those who initiated the suit must prove they live in an area affected by the factory, which Kozma says is “hard” to demonstrate. Similar protest campaigns have expanded to at least 10 Hungarian cities. In Ács, a battle is playing out at the courthouse between a local environmental organization and the county government office that issued the operational permit for Bamo Technology Hungary, the domestic subsidiary of a Chinese cathode factory. The trial, which began this month, could take half a decade to conclude, and has cost the environmental group tens of thousands of dollars in legal fees, a resident involved in the lawsuit told Rest of World, requesting anonymity as they were not authorized to speak to the media. Recent rallies in Heves have successfully forced the mayor to cancel the town’s $109-million contract with China’s BYN Chemical to build a plant to produce NMP, a solvent for the manufacture of lithium-ion batteries. “Even if [the plant] would have worked in a safe way … in recent weeks it has caused unrest among the [town’s] population and raised significant public debates and tension,” the mayor wrote on his Facebook page. Local rallies and protests have seen some success in pausing projects. As civic action ramps up, so, too, has government pressure. Last month, the government launched a “special investigation” into Göd-ÉRT, a civic organization led by a local investigative journalist that examined Samsung SDI’s activities. Authorities have accused the association of using foreign aid to influence elections, and are requesting extensive data and documents that include information on their press appearances, databases, and “public opinion” campaigns. Orbán’s office did not respond to Rest of World’s request for comment. The women from Mikepércs fear that they will be targeted next. But they and other activists in Hungary’s small towns say they will continue their work. They are celebrating other small victories this year, such as in Alsózsolca, where local protests halted a Slovenian firm’s plans to build a battery recycling plant. Meanwhile, CATL told Chinese state media earlier this year that “everything is on schedule,” and its battery plant near Mikepércs will begin production in 2025. “Even if we can’t stop this [CATL] factory, we hope our actions embolden others,” Csuvarszki said. Yvonne Lau is a journalist based in Istanbul and Vancouver covering business and society with a focus on China and Russia. Additional reporting by Zsuzsa Bodnár and Dóra Győrffy from Göd and Budapest. Read more stories QUIZ EV REVOLUTION REGIONAL CHAMPIONS What are you wearing? Rest of World’s fashion quiz India’s electric cab companies can’t find enough cars to put on the road A local ride-hailing service can't beat Uber and Bolt, so its drivers are beating up their rivals There are only a handful of electric taxi manufacturers in India today, slowing the country’s EV revolution. Shesha was launched as a fair-minded local competitor to Western companies in South Africa. It has acquired an ugly reputation for intimidating drivers and passengers. Test your knowledge of e-commerce startups, 17th-century markets, and everything in between. By REST OF WORLD By ANANYA BHATTACHARYA By RAY MWAREYA ABOUT US JOBS PRIVACY POLICY PLATFORMS NEWSLETTERS © 2024 REST OF WORLD DONATE CONTACT US

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