Chinese manufacturer BYD is reportedly in advanced talks to establish a major electric vehicle battery production facility in Matosinhos.
BYD battery factory in Portugal considered by electric vehicle manufacturer
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Chinese electric vehicle manufacturer BYD is currently exploring plans to establish a new manufacturing facility in Southern Europe, with a focus on producing advanced energy storage systems.
According to recent Portuguese media reports, several rounds of formal discussions have already taken place involving government officials and Portugal’s Trade and Investment Agency has indicated that the initiative is well advanced.
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The potential site under evaluation for the BYD battery factory Portugal project is the former Galp refinery located in Matosinhos. Economy Minister Manuel Castro Almeida publicly acknowledged that a productive dialogue is underway with a Chinese automotive enterprise regarding a facility in the country, though he opted to withhold further specifics at this stage.
Meanwhile, Matosinhos mayor Luísa Salgueiro has expressed strong support, noting that the substantial investment would be warmly welcomed by the local community.
Strategic advantages for the proposed BYD battery factory Portugal
Establishing a major industrial facility in Matosinhos would offer distinct logistical advantages. The former industrial site benefits considerably from its close proximity to the planned Barroso lithium mine situated in Boticas within the Vila Real district, where commercial extraction is scheduled to commence in 2028.
Furthermore, convenient access to the Port of Leixões alongside robust regional transport infrastructure significantly enhances the location’s commercial appeal for large-scale operations.
If finalized, the proposed facility is envisioned to function as a vital Iberian production hub. It would be equipped to supply broader European markets while potentially supporting a future vehicle assembly plant in Spain, which has previously been identified as another potential destination for the firm’s ongoing European expansion strategy.
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Headquartered in Shenzhen within China’s southern Guangdong province, the corporation continues to accelerate its international manufacturing footprint.
A notable precedent is Brazil, where BYD’s production complex located in Camaçari, Bahia state, achieved a significant milestone by producing 100,000 locally produced electric and plug-in hybrid vehicles by July 2026, following the official inauguration of the site’s initial phase in October 2025.
