# BYD evaluates Portugal refinery site for European EV battery fab *The 240-hectare plot in Matosinhos offers Atlantic port access as EU countervailing duties of up to 35.3% push Chinese automakers to localize output.* **Published:** November 10, 2026 **By:** Lian Chen **Section:** Batteries & Electric Vehicles — China **Format:** Company Watch **Confidence:** high **Source:** https://eastasiabrief.com/batteries-ev/byd-evaluates-portugal-refinery-site-european-ev-battery-fab-1305 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - BYD evaluates 240-hectare Galp refinery site in Portugal for European cell fab - Facility links to 183,000-tonne Barroso lithium project starting output in late 2028 - Binding contract terms, planned gigawatt-hour capacity and capex remain unfiled ![People stand among rusted storage tanks at an idle coastal refinery site in Portugal being evaluated for an electric vehicle battery plant. (AI-generated image)](https://eastasiabrief.com/media/2026-11-10-f75312e27f4a.webp) *People stand among rusted storage tanks at an idle coastal refinery site in Portugal being evaluated for an electric vehicle battery plant. (AI-generated image)* BYD is evaluating an idle 240-hectare coastal refinery site in northern Portugal for a dedicated European electric vehicle battery cell plant, industrial officials confirmed Nov. 10, 2026. The site under review occupies decommissioned industrial ground in Matosinhos, near Porto, previously operated by Portuguese energy company Galp Energia. Developing the plot would give BYD direct access to Atlantic shipping routes through the neighboring Port of Leixões. The project would secure local battery cell supply for the automaker's European vehicle assembly network. European Union countervailing duties of up to 35.3% on Chinese-made electric vehicles have heightened pressure on automakers to manufacture cells and pack systems inside member states. Galp Energia closed the Matosinhos refining complex in 2021, leaving 240 hectares of industrial land designated for redevelopment. A portion of that site is being examined for battery manufacturing, local municipal officials confirmed. Portuguese Economy Minister Manuel Castro Almeida said Nov. 3 that the government was holding productive discussions with a Chinese vehicle manufacturer. The minister declined to name the company or specify the planned industrial operation. Matosinhos Mayor Luísa Salgueiro said Nov. 5 that the municipality would welcome high-value industrial manufacturing at the former refinery. The municipal government has not yet received a formal project filing from the automaker, Salgueiro said. Establishing a manufacturing base in northern Portugal positions BYD near Europe's largest planned hard-rock lithium mining operation. The Barroso lithium project in Boticas sits approximately 140 kilometers northeast of the Matosinhos refinery zone. Project developer Savannah Resources holds 39 million metric tons of spodumene resources at Barroso. The company plans to produce 183,000 metric tons of spodumene concentrate annually over an initial 14-year operational lifespan, according to its definitive feasibility study. Savannah Resources scheduled commercial extraction at Barroso to begin in late 2028 after completing environmental compliance filings. The project holds strategic status under the European Critical Raw Materials Act and secured a Portuguese state grant of up to €110 million ($120 million). Access to domestic lithium refining reduces freight expenses and shipping exposure for battery cell production. A manufacturing plant in Matosinhos would link directly to the Port of Leixões, enabling maritime component distribution across Western Europe. Portuguese logistics infrastructure at Leixões handles containerized chemical cargo and bulk dry materials. The port terminal completed deepwater expansion work to accommodate modern container vessels, providing an efficient import corridor for specialized anode binders and cathode precursors. The battery fab initiative aligns with the automaker's stated strategy to localize core vehicle components within Europe. Alfredo Altavilla, BYD special adviser for Europe, said Sept. 16 that the company will require three assembly plants and one dedicated battery cell facility to comply with European Union trade rules. BYD is completing its first European passenger vehicle factory in Szeged, Hungary, designed for an initial capacity of 150,000 units annually. Altavilla said the automaker plans to determine the location of its second European assembly plant before the end of 2026. Chinese battery manufacturer CALB established an Iberian precedent by investing €2 billion ($2.18 billion) in Sines, Portugal. The Portuguese government awarded national strategic interest status to that 45-hectare project, which targets 15 gigawatt-hours of annual cell capacity by 2028. A second Chinese battery footprint in Portugal would concentrate Southern Europe's battery value chain along Atlantic transit corridors. Portuguese grid infrastructure provides another commercial incentive, delivering approximately 80% of national electricity demand from renewable solar and wind generation. Portugal offers lower operating power costs compared to Central European manufacturing hubs. The Iberian electricity market recorded wholesale power prices below €45 per megawatt-hour during peak renewable generation periods, driven by domestic solar output and hydro storage. Local battery assembly allows electric vehicle manufacturers to meet regional value-content thresholds under European trade agreements. Vehicles assembled with imported Chinese lithium iron phosphate cells face tariff exposure and risk exclusion from national electric car subsidy frameworks. Operating a dedicated cell facility inside the European Union shields the automaker from rising supply chain tariffs. That internal capacity would supply both the Szeged facility and future assembly operations planned across the Iberian Peninsula. Developing battery manufacturing in northern Portugal reduces transit logistics for automotive facilities across the Iberian Peninsula. Transport corridors linking Matosinhos to Spanish automotive clusters around Vigo and Valladolid permit direct highway freight delivery for completed battery pack modules. South Korean battery suppliers LG Energy Solution and Samsung SDI currently supply European automotive assemblers from production hubs in Poland and Hungary. Expanding Chinese captive cell manufacturing in Portugal increases commercial rivalry for raw materials and regional utility allocation. Savannah Resources plans a final investment decision for the Barroso lithium project in early 2027 following capital procurement. German material processor AMG Critical Materials already holds a five-year agreement to purchase 45,000 metric tons of annual spodumene concentrate from the site. Industrial land rezoning and environmental permitting at Matosinhos represent necessary procedural hurdles before site work can begin. Decontaminating the former petroleum refinery grounds requires environmental verification from the Portuguese Environment Agency. BYD has not filed corporate disclosures with the Hong Kong Stock Exchange regarding Portuguese land acquisitions. The Portuguese government has not published cell capacity targets, capital investment sums or binding operational agreements for the Matosinhos site. Savannah Resources scheduled commercial spodumene concentrate shipments from Barroso for late 2028. The European Commission plans to review member-state strategic raw material project milestones and supply agreements in Brussels in mid-2027. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | Portuguese cell plant review | LG Energy Solution and Samsung SDI face direct Chinese captive cell competition inside EU tariff border | BYD secures European raw-material integration while insulating car output from EU tariffs | Panasonic sees European auto clients gain alternative LFP cell options in Iberia | European EV supply chain accelerates upstream lithium processing around Leixões and Sines | ## In this story - **Companies:** BYD, Galp Energia - **Tickers:** 1211.HK, 002594.SZ, GALP.LS - **Exposed:** Savannah Resources, CALB - **Policy:** Tariffs, Local Content Rules - **Impact:** Supply Chain, Capex, Compliance ## Primary sources 1. hkexnews.hk 2. eletrificados.pt 3. sapo.pt 4. automobil-produktion.de 5. thebay.mo --- Cite as: East Asia Brief, "BYD evaluates Portugal refinery site for European EV battery fab," November 10, 2026. https://eastasiabrief.com/batteries-ev/byd-evaluates-portugal-refinery-site-european-ev-battery-fab-1305