Chinese battery maker CALB will invest €2 billion ($2.09 billion) in a lithium battery gigafactory in Portugal, with production expected to begin in 2028, the company said on Friday.
The factory, to be built in Sines, around 100 km (62 miles) south of Lisbon, will have an annual production capacity of 15 gigawatt hours, equivalent to approximately 187,000 electric vehicle (EV) batteries. CALB said the plant would primarily serve the European market.
See also: CATL Sues CALB for Patent Infringement Over Battery Modules, Seeks $8.19 Million in Compensation
The project marks CALB’s first factory in Europe and is expected to create 1,800 direct jobs. The company anticipates that once the plant reaches full capacity, it will contribute more than 4% to Portugal’s GDP.
Portugal, along with neighboring Spain, aims to leverage its lithium resources to establish a full battery supply chain, from mining and refining to cell manufacturing and recycling.
See also: China Dominates Global EV Battery Supply Chain, Study Finds
London-based Savannah Resources plans to start commercial lithium production at its Barroso project in northern Portugal by 2027. The company says the Barroso deposit, rich in spodumene—a lithium-bearing mineral—is the most significant in Europe.
