CATL's Hong Kong-listed shares declined on Wednesday after local regulators ordered a temporary halt to operations in parts of the Chinese battery maker's plant in Debrecen, Hungary, following biological monitoring that found elevated nickel exposure in nine employees.
Shares in Hong Kong fell 4.1% to HK$568.00, marking their lowest close since March 10, against a roughly 0.9% drop in the broader Hang Seng Index.
The Hajd u-Bihar County Government Office directed that work be suspended in three specific areas of the Debrecen facility until identified safety shortcomings are remedied, while allowing equipment testing to continue, according to reporting that cited the Hungarian authorities.
Catalyzing the action was CATL's own notification to regulators after its routine biological exposure monitoring returned results indicating elevated nickel levels in nine staff members. A subsequent occupational safety inspection by Hungarian authorities found deficiencies in the provision of protective equipment.
The three affected work zones encompass operations used for laser cutting of cathode and anode foils, electrode-foil winding, and cell drying. Those areas are central to the processes used in preparing electrode materials and handling cells during production.
CATL has said the source of the nickel exposure remains under investigation. The company has suspended ongoing equipment commissioning at the site while it implements stricter occupational-safety measures, and it reported that routine biological monitoring began in early June with results received in early August showing elevated nickel exposure in nine employees.
The incident occurs as the Debrecen project advances toward initiating cell production. CATL announced in 2022 plans to invest C7.34 billion in a plant at Debrecen designed for an annual capacity of 100 gigawatt-hours, intended to produce battery cells and modules, according to the same reporting. While the facility has begun manufacturing battery modules, full cell production had not yet started; the site was still undergoing commissioning and preparing for trial production when the work suspensions were ordered.
Context and near-term operational status
The work stoppage is limited to three operational zones, with regulators permitting equipment testing to continue elsewhere at the site. CATL has paused commissioning steps that could bring production equipment online while it tightens safety protocols and continues the investigation into the exposure findings.
As of the most recently reported monitoring cycle, routine biological tests were initiated by CATL in early June and yielded the elevated nickel results that were received in early August. The company has acknowledged those findings and notified authorities, triggering the occupational safety inspection and subsequent temporary suspensions.
Implications for markets and production ramp-up
The regulatory action comes as Debrecen prepares for the transition from commissioning and trial runs to cell manufacturing. CATL has already commenced module production at the location, but full cell output had not been launched prior to the ordered halts. The company has indicated it will maintain stricter occupational-safety measures as it addresses the deficiencies identified by Hungarian inspectors.
At this stage, authorities have permitted equipment testing to continue even as hands-on operations in three zones remain suspended, and CATL has publicly stated the matter is under investigation. No additional operational timelines have been provided by the company or the authorities in the reporting cited.
Summary of reported facts
- Nine employees showed elevated nickel exposure in biological monitoring results that CATL received in early August.
- The Hajd u-Bihar County Government Office ordered work suspended in three areas of the Debrecen plant until safety deficiencies are remedied, while allowing equipment testing to continue.
- CATL has suspended ongoing equipment commissioning and introduced stricter occupational-safety measures pending investigation into the exposure source.
- The Debrecen site was planned as a C7.34 billion, 100 GWh-per-year plant to produce cells and modules; module production has begun, but cell production had not yet started and the facility was in commissioning and trial production preparations.