Summary:
CALB breaks ground on its first overseas battery plant in Portugal with a €2 billion investment.
The plant aims for 15 GWh annual capacity, enough for 300,000 EVs.
Major auto brands like Toyota and Volkswagen have already placed orders.
Portugal's lithium reserves and renewable energy usage are key factors in CALB's location choice.
CALB ranks fourth globally in battery production with a 4.4% market share.
CALB, a leading Chinese power battery manufacturer, has officially broken ground on its first overseas battery plant in Sines, Portugal. This ambitious project, with an investment of €2 billion ($2.1 billion), aims to commence production in 2027. The factory will focus on producing power and energy storage batteries tailored for the global market, particularly targeting European customers. 
The initial phase of the plant is projected to have an annual capacity of 15 GWh, sufficient to power approximately 300,000 electric vehicles (EVs), assuming each vehicle uses a 50 kWh battery pack. CALB has already secured orders from major automakers including Toyota, Volkswagen, Ford, and Audi.
The strategic choice of Portugal is attributed to its favorable political relationship with China and its status as home to Europe's largest lithium reserves. Additionally, Portugal's renewable energy usage and its efficient transport links via rail and port are significant advantages for CALB.
In November 2022, CALB signed a memorandum of cooperation with the Portuguese government to initiate this project in an industrial zone near Sines, which is recognized for its logistical advantages, being home to Europe's second-largest deep-water port.
CALB ranks as the fourth largest battery maker globally, with 39.4 GWh of installed power batteries, holding a 4.4% global market share as per SNE Research. The company anticipates a net income increase of about 80% to 100% in 2024, signaling significant growth potential.
The future of battery production in Europe is set to change dramatically with CALB's new facility, enhancing the region's capabilities in the electric vehicle market.
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