BYD’s battery factory may be on its way to Portugal

BYD is in talks with the government, and the sites of the former Galp refinery in Matosinhos are among the possible locations.

After the government confirmed contacts with potential Chinese investors interested in establishing an automobile factory in Portugal, new information suggests a possible investment by BYD in the country.

The project would not involve an automobile factory but rather a battery factory. According to Expresso, which cites sources close to the matter, there have already been several discussions between the Chinese manufacturer, the government, and Portugal’s Agency for Investment and Foreign Trade (AICEP). Per the same sources, the project is “quite advanced.”

For now, it is not possible to confirm whether this potential investment is related to the discussions previously revealed by the Minister of Economy and Territorial Cohesion, Manuel Castro Almeida.

Matosinhos among potential locations

The land at the former Galp refinery in Matosinhos, which closed in 2021, is among the sites under consideration. Of the 240 hectares occupied by the facility, 100 have been handed over to the municipality. Of this area, 40 hectares are designated for a campus of the University of Porto, and another 20 hectares are set aside for a green park. The remaining portion remains undeveloped.

Quoted by Expresso, Luísa Salgueiro, mayor of Matosinhos City Council, has already spoken on this potential project. She considered the investment to be a “very welcome project,” although the city council has not yet been formally contacted.

The location offers logistical advantages due to its proximity to the Leixões port and major transportation routes. Other factors in Portugal’s favor include the availability of renewable energy and the future extraction of lithium from the Barroso mine in Boticas, with operations set to begin in 2028.

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Batteries to Power Europe

In addition to this project, BYD has several other investments underway in Europe. Besides the new factory in Hungary, the Chinese brand is considering Spain and France for new industrial investments, particularly automobile factories.

While BYD’s project remains pending confirmation, another Chinese company, CALB, has already confirmed the construction of a battery factory in Sines. The factory will have an annual production capacity of 187,000 batteries and involves an investment of two billion euros.