China's CALB to invest $2.09 billion in EV battery factory in Portugal
LISBON, Feb 21 (Reuters) - China's CALB, one of the world's largest battery makers for electric vehicles, said on Friday it would invest 2 billion euros ($2.09 billion) in a gigafactory in Portugal that is expected to start production in 2028.
The factory to be built in Sines, about 100 km (62 miles) south of Lisbon, will produce lithium batteries with a total annual capacity of 15 gigawatt hours, which is equivalent to about 187,000 batteries for EVs, mainly in the European market.
CALB said its first factory in Europe would create 1,800 direct jobs, expecting it to represent more than 4% of Portugal's GDP when the plant hits full capacity.
Along with neighbouring Spain, the country wants to take advantage of local lithium deposits, aiming to cover the entire value chain from mining and refining, to cell and battery manufacturing, and to battery recycling.
London-based Savannah Resources SAVS.L expects to start commercial production of lithium at its Barroso project in northern Portugal in 2027. The Barroso deposit of spodumene, a lithium-bearing mineral, is the most significant in Europe, according to the company.
Portugal's plan is in line with Europe's drive to reduce its dependence on countries such as China for key raw materials for the green transition.
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