Chinese manufacturer BYD is reportedly in talks with the Portuguese government and the AICEP agency regarding the construction of a battery production facility. The company is considering the former Galp refinery site in Matosinhos, near Porto, as a potential location for the project.
The Matosinhos site spans approximately 240 hectares, with demolition work expected to conclude by the end of 2026. The location offers logistical advantages, including proximity to the Port of Leixões and future access to lithium from the Barroso mine, which is scheduled to begin production in 2028.
While BYD has not officially confirmed the plans, the Portuguese Minister of Economy, Manuel Castro Almeida, acknowledged ongoing discussions with a Chinese automaker. The facility could potentially serve as a regional production hub, supporting BYD's broader European expansion strategy, which includes a plant currently under construction in Hungary.
The scope of production at the potential Portuguese site remains undefined, as it is unclear whether the plant would manufacture battery cells, modules, or complete battery systems. BYD currently produces its own lithium iron phosphate Blade Batteries using a cell-to-pack design.
