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Portugal has secured EU support for a major clean-tech project: a facility dedicated to producing materials for lithium-ion batteries.
The initiative is one of 61 chosen by the European Commission for funding aimed at cutting carbon dioxide (CO₂) emissions.
Altogether, Brussels is allocating €2.9 billion to what it calls “cutting-edge, zero-impact technology projects”.
Among them is Portugal’s NEXTGEN CAM initiative, focused on manufacturing LNMO (lithium-nickel-manganese oxide) cathode material. This component is crucial for rechargeable lithium-ion batteries, which power electric vehicles and support renewable-energy storage systems.
The Commission describes NEXTGEN CAM as a “pioneering industrial unit” that will strengthen the continent’s battery supply chain and support Europe’s energy transition. The precise location of the Portuguese factory, however, has not yet been disclosed.
This development would mark Portugal’s second lithium battery-related industrial venture, following Chinese firm CALB’s €2 billion investment in a plant in Sines.
Funding for NEXTGEN CAM comes via the EU’s Innovation Fund, financed by revenues from the Emissions Trading System (EU ETS).
The project sits within the ‘clean manufacturing’ category, reserved for initiatives with capital expenditure above €2.5 million that produce components for renewable energy, storage technologies, heat pumps or hydrogen systems.
Paul Stannard, chairman and founder at Portugal Pathways and the Portugal Investment Owners Club, said: “Portugal continues to be one of Europe’s fastest rising tech and development hubs.
“This latest EU-backed project reinforces the country’s strategic importance in the clean-energy transition and highlights the confidence international institutions have in Portugal’s innovation ecosystem.
“We are seeing increasing momentum from global investors who recognise Portugal’s ability not only to attract cutting-edge industrial projects but also to support the talent, research capability and infrastructure necessary to deliver them.
“With initiatives like NEXTGEN CAM, Portugal is positioning itself at the forefront of Europe’s battery value chain — a critical pillar for sustainable mobility and renewable-energy storage. It marks yet another step forward in building a high-value industrial economy powered by technology, green investment and scientific excellence.”
Across this funding stream, 11 projects have been awarded grants totalling €774 million. These span renewable-energy component production (six projects), battery-recycling initiatives (four), and one project in energy-intensive industry components.
The awards follow the EU’s first dedicated call for zero-impact technology proposals, launched in December 2024 as part of efforts to boost Europe’s technological leadership and speed up the rollout of innovative decarbonisation solutions.
In total, the 61 selected projects cover 19 industrial sectors in 18 countries, with a focus on energy-intensive industries, renewable energy, sustainable transport, energy-efficient construction, clean-tech manufacturing, storage and industrial carbon-management technologies.
According to Commission estimates, these projects together could avoid around 221 million tonnes of CO₂-equivalent emissions over their first 10 years of operation — roughly comparable to the annual emissions of 9.9 million European cars. Funding amounts for each project are expected to be finalised in the first half of 2026.
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