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Portugal May Get Europe’s Largest Lithium-Ion Cell Factory With CALB

CALB may build Europe's biggest lithium-ion cell factory in Sines, Portugal 7 photos
Photo: CALB
CALBCALBCALBCALBCALBCALB may build Europe's biggest lithium-ion cell factory in Sines, Portugal
When we talk about battery manufacturers, we usually mention CATL, LG Energy Solution, BYD, Panasonic, SK Innovation, and Samsung. You probably have never heard about China Aviation Lithium Battery Technology – CALB, for short. However, this company is the seventh largest in the world, beating SVolt and Gotion. Portugal may get its first cell factory thanks to CALB, but that is not set in stone yet.
The Chinese cell manufacturer announced on WeChat that it signed a Memorandum of Cooperation (MoC) with the Portuguese government. To be more specific, the deal was signed with Global Parques, a subsidiary of the Agência para o Investimento e Comércio Externo de Portugal (Portuguese Agency for Investment and Foreign Trade, or AICEP).

According to Agência Lusa, the plan is to build the lithium-ion cell factory in Sines, Setúbal. The mayor Nuno Mascarenhas said the plant needs a 100-hectare (247.1-acre) lot, which AICEP Global Parques does not currently have. That said, the subsidiary is working to install the CALB factory at the Zona Industrial e Logística de Sines (Industrial and Logistics Zone of Sines, or ZILS).

At ZILS, there are several entities taking care of the urbanization plan. The Portuguese government, Sines, and AICEP Global Parques are working to put the subsidiary in charge of the needed terrains. And that need should soon double.

Nuno Gameiro told Agência Lusa that CALB plans to start operations in 2025. CALB’s representative in Portugal said the plant will initially have a capacity of 15 GWh per year and will only occupy 50 of the 100 hectares. That will be enough to supply the current contracts CALB already has with European car factories.

In a second phase, starting in 2028, the company will expand and occupy all the lot. Yearly production capacity will then expand to 45 GWh. Gameiro said that if everything goes according to the plan, a third phase will demand another 100-hectare terrain in the area, making it comparable to Giga Grünheide in terms of size. In other words, CALB may have the largest battery plant in Europe, with a 90 GWh per year capacity.  

Although the deal is not legally binding yet, CALB seems pretty determined to get it done if the Portuguese government makes it possible. The fact that it was the one disclosing the deal is just one of the signs it has the firm intention of making it happen. For Portugal, that’s a fantastic deal. Apart from exporting most of the production, the capacity expansion may ensure AutoEuropa – Volkswagen’s plant in Portugal – has a steady supply of cells should it have the chance to go electric.
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About the author: Gustavo Henrique Ruffo
Gustavo Henrique Ruffo profile photo

Motoring writer since 1998, Gustavo wants to write relevant stories about cars and their shift to a sustainable future.
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