Portugal signs off €350 million incentives for CALB’s €2.07 billion Sines battery plant

Chinese battery maker CALB (China Aviation Lithium Battery) has moved its planned Portugal lithium-ion battery project into a formal investment-contract phase, following Portugal’s government agency for investment and foreign trade (AICEP)-led signing ceremony in Sines on Jan. 20, 2026.

Portugal’s government said the largest of six AICEP-contracted projects presented that day is a €2.065 billion lithium battery plant in Sines, intended to supply both automotive and energy storage markets, with 1,800 jobs expected (including 497 highly qualified positions).

AICEP’s own disclosure in Portuguese specifies the CALB project investment at €2.067 billion and states it “counted on” an incentive of €350 million. In parallel, Portugal’s government noted that the six signed contracts total €3.077 billion in investment and €699.7 million in incentives across sectors, including e-mobility and mining-related projects.

Project siting is in the Sines Industrial Zone / ZILS, close to the Port of Sines. Public materials describe a 45-hectare site, with location about 100 km south of Lisbon, which will have five production buildings and enough room for expansion. CALB expects an annual capacity target of 15 GWh for this factory.

On the policy side, AICEP said the project has been granted “National Interest Project” (PIN) status, which is designed to accelerate administrative processes, and it has also obtained special grid access rights to meet its large power demand. The same AICEP note adds that the project received conditional environmental approval in August 2024, subject to compliance with specific requirements.

Timeline: differing milestones remain in circulation. CALB’s February 2025 communications around the groundbreaking described the Sines project as a “zero-carbon AI” facility and pointed to deliveries from 2027, while multiple third-party reports and Reuters have framed 2028 as the year for start of production/operation. The most consistent interpretation across sources is that CALB and partners may aim for initial deliveries in 2027, with full operational ramp-up aligned to 2028 commissioning milestones.

China’s Ministry of Foreign Affairs also reported that Ambassador Yang Yirui attended the Jan. 20 signing and that CALB was the only Chinese company among the signatories, with Portugal’s prime minister stating that Lisbon would further streamline approvals and improve efficiency for foreign investors.