China’s CALB to invest $2.09 billion in EV battery factory in Portugal
CALB said its first factory in Europe would create 1,800 direct jobs, expecting it to represent more than 4% of Portugal's GDP when the plant hits full capacity.
China’s CALB, one of the world’s largest electric vehicle (EV) battery manufacturers, has announced a €2 billion ($2.09 billion) investment in a new gigafactory in Portugal.
The factory, to be built in Sines—approximately 100 kilometers south of Lisbon—is set to begin production in 2028, with an annual capacity of 15 gigawatt-hours (GWh), equivalent to around 187,000 EV batteries.
A Strategic Investment for Portugal and Europe
The project, officially presented in Lisbon on February 24, was attended by CALB’s Chairman, Liu Jingyu, and Portugal’s Minister of Economy, Pedro Reis.
CALB described the initiative as “a historic investment for Portugal’s green economy.” The plant is expected to contribute over 4% to the country’s GDP once it reaches full capacity, solidifying Portugal’s role in Europe’s EV supply chain.
CALB’s European expansion aims to support the continent’s transition to electric mobility and energy storage solutions.
“Our factory will not only create new jobs but will also position Portugal as a leader in EV battery production in Europe,” Liu Jingyu said in an interview with Expresso.
Construction and Job Creation
The gigafactory is set to break ground in 2025, with production commencing in 2028. The facility is expected to create approximately 1,800 direct jobs, along with numerous indirect employment opportunities in Portugal’s growing green tech sector.
“We chose Portugal for our gigafactory due to its strategic advantages, strong economic potential, and skilled workforce,” CALB stated.
Lithium Supply and European Incentives
The Portuguese government has classified the project as a Project of National Interest, which may allow it to receive up to €350 million in funding through the European incentive scheme for reindustrialization.
Economy Minister Pedro Reis confirmed that under the scheme, the project could qualify for support covering up to 35% of its investment.
Portugal, alongside Spain, is seeking to capitalize on its lithium reserves to develop a full EV battery production ecosystem—from mining and refining to manufacturing and recycling.
London-based Savannah Resources plans to begin lithium production at its Barroso mine in northern Portugal by 2027.
The Barroso deposit is considered the most significant source of spodumene, a lithium-rich mineral, in Europe.
Portugal’s Role in the EV Battery Market
With CALB’s investment, Portugal is strengthening its position in the European EV industry. However, the country has faced setbacks in other battery-related projects.
Swedish battery manufacturer Northvolt and Portuguese energy company Galp had initially planned to build Europe’s largest lithium conversion plant in Setúbal, but the project was scrapped due to financial difficulties.
Despite these challenges, the CALB gigafactory in Sines represents one of the largest foreign investments in Portugal since the establishment of Volkswagen’s Autoeuropa plant.
The facility is expected to play a crucial role in Europe’s push for sustainable energy and electric mobility.