According to Reuters, China’s China Aviation Lithium Battery Technology Co., Ltd. (CALB), one of the world’s leading electric vehicle (EV) battery manufacturers, has announced a $2.09 billion investment to build a gigafactory in Sines, Portugal. This new facility is expected to begin production in 2028 and will play a crucial role in Europe’s green energy transition by supplying lithium batteries to the European market.
Key Highlights of the Investment
- Production Capacity: 15 GWh annually (~187,000 EV batteries per year)
- Job Creation: 1,800 direct jobs
- Economic Impact: Expected to contribute over 4% of Portugal’s GDP at full capacity
The strategy focuses on strengthening Europe’s EV battery supply chain by reducing dependence on battery imports from China and promoting the development of local lithium mining and refining operations. By enhancing domestic production capabilities, this approach aims to create a more resilient and self-sufficient battery industry within Europe.
Supporting Europe’s Green Transition
This project aligns with Portugal’s long-term strategy to become a key player in battery manufacturing and reduce Europe’s dependence on external lithium sources. Alongside Spain, Portugal is leveraging its abundant lithium deposits to build a fully integrated supply chain, covering:
- Lithium mining & refining
- Battery cell & pack manufacturing
- Battery recycling & sustainability initiatives
Strengthening Europe’s battery ecosystem by reducing reliance on Chinese manufacturers will enhance supply chain security and create a more resilient local production network for lithium-ion batteries. This, in turn, will accelerate the adoption of green energy by supporting the widespread use of electric vehicles and renewable energy storage solutions, contributing to Europe’s sustainability goals.
Significance of the Project for CALB
This investment represents a pivotal step for CALB in expanding its global presence and securing a stronger foothold in the European EV battery market. By establishing a manufacturing base in Portugal, CALB aims to enhance market reach, overcome trade barriers, and improve supply chain efficiency, all while aligning with EU sustainability goals and strengthening its competitive position in the evolving global battery industry.
CALB is a high-tech new energy company specializing in the research, development, production, and sales of lithium-ion power batteries. On October 6, 2022, CALB was listed on the Main Board of the Hong Kong Stock Exchange. The company aims to achieve a production capacity of over 500 GWh by 2025 and reach 1 TWh by 2030.
The Future of Battery Manufacturing in Portugal
With Europe’s strong push toward battery independence, CALB’s gigafactory is expected to play a vital role in boosting regional production, securing raw material supply chains, and accelerating EV adoption. As the Portuguese and European battery industries expand, this investment highlights a new era of strategic battery production that will shape the future of sustainable mobility and energy storage in Europe.
Want to stay updated on the battery industry? Check out the latest news on BatteriesDaily!
