Summary:
CALB begins construction of its first European battery factory in Sines, Portugal.
Factory operations expected to start in 2028, a delay from the initial 2025 plan.
Target capacity: 15 GWh annually, producing approximately 187,000 EV batteries.
Investment of 2 billion euros classified as an IPCEI project to boost EU support.
Projected to create 1,800 jobs and contribute over 4% to Portugal's GDP.
CALB's Ambitious Plans for Portugal
Chinese battery manufacturer CALB is gearing up to start the construction of its first European battery factory this year at the port of Sines, Portugal. Initially announced in 2022, the factory's operations are now slated to begin in 2028, a delay from the previously expected timeline of late 2025. This facility will focus on producing lithium batteries and ready-to-install battery packs.
Image: CALB
According to Reuters, CALB aims to achieve an annual production capacity of 15 gigawatt hours, equating to about 187,000 electric vehicle batteries each year, primarily for the European market. The factory will be developed on a 92-hectare site in the industrial and logistics zone of Sines, featuring five sections dedicated to the production of electrodes, cells, battery assembly, and casing.
CALB is investing a staggering 2 billion euros into this project, which has received classification as an IPCEI project (Important Projects of Common European Interest) from the EU, ensuring it receives appropriate subsidies. The factory is projected to create 1,800 direct jobs and could contribute over 4% to Portugal's national GDP upon reaching full production capacity in 2028.
This strategic expansion is expected to enhance CALB's presence in the European electric vehicle and energy storage systems markets. A senior executive stated that the factory will not only generate new employment opportunities but also position Portugal as a leader in battery production for electric vehicles in Europe.
Originally, CALB announced plans to start battery production as early as 2026, aiming to increase its output to 45 GWh by 2028. However, recent updates indicate a more gradual rollout than initially anticipated.
Market research from SNE Research highlights CALB's growth, noting that the company held 4.4% of the global electric vehicle battery market in 2024, ranking as the fourth largest EV battery supplier worldwide, trailing behind CATL, BYD, and LG Energy Solution.
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