Chinese battery manufacturer CALB has commenced construction of its first overseas factory in Portugal, marking a key step in its global expansion strategy.
The plant, which broke ground on February 24, represents an investment of approximately 2 billion euros ($2.1 billion) and is scheduled to begin production in 2027, according to a report by Chinese media outlet Jiemian. The facility will produce power and energy storage batteries, including battery cells, modules, and packs for the global market, with a primary focus on European customers.
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CALB has already secured supply agreements with several international automakers, including Toyota, Volkswagen, Ford, and Audi, the report said. The first phase of the plant will have an annual production capacity of 15 GWh—sufficient to power around 300,000 electric vehicles (EVs), assuming an average battery pack size of 50 kWh per vehicle.
The factory is located in Sines, Portugal, a choice driven by the country’s political ties with China, its vast lithium reserves—the largest in Europe—and its renewable energy infrastructure, Jiemian reported. Sines’ port and rail connections further enhance its appeal as a logistics hub for battery production.
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CALB initially announced its European expansion plans in November 2022 with a memorandum of cooperation with the Portuguese government. The Sines port, one of Europe’s largest deep-water ports with round-the-clock operations, will facilitate battery exports and supply chain logistics, the company has said.
CALB ranks as the world’s fourth-largest battery maker, with 39.4 GWh of installed power batteries in 2024, accounting for a 4.4 percent global market share, according to South Korean research firm SNE Research. In China, it held a 6.23 percent share in January, trailing industry leaders CATL (47.08 percent) and BYD (22.90 percent).
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The company forecasts a sharp rise in 2024 net income, projecting earnings between RMB 786 million ($108 million) and RMB 874 million, an increase of 80 to 100 percent from 2023 levels.