Market Overview

The Portugal EV battery market size was USD 304.69 Million in 2025 and is projected to reach USD 2,002.54 Million by 2034, growing at a CAGR of 23.27% from 2026 to 2034. The market growth is fueled by government incentives promoting zero-emission vehicles, domestic investment in battery manufacturing capacity, and transformation of the automotive industry towards electric vehicles. Rising consumer acceptance and expanded infrastructure underpin sustained demand. 

Study Assumption Years

• Base Year: 2025

• Historical Years: 2020-2025

• Forecast Period: 2026-2034

Portugal EV Battery Market Key Takeaways

• Current Market Size: USD 304.69 Million in 2025

• CAGR: 23.27% during 2026-2034

• Forecast Period: 2026-2034

• Portugal's government expanded financial incentives in 2025, increasing the zero-emission vehicle budget to €10 million with individual subsidies up to €4,000 and €6,000 for companies.

• China Aviation Lithium Battery Technology invested €2 billion to build a 15 GWh lithium-ion battery facility in Sines, expandable to 45 GWh by 2028.

• Stellantis converted its Mangualde Production Center into a large-scale BEV manufacturing plant with €119 million investment.

• Battery electric vehicle registrations hit 22.5% market share of new passenger cars in January 2025.

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Market Growth Factors

The Portuguese government’s strategic expansion of financial incentives is accelerating zero-emission vehicle adoption. The 2025 initiatives increased the budget from €8.5 million in 2024 to €10 million and provide subsidies up to €4,000 for private individuals and €6,000 for companies purchasing battery electric vehicles (BEVs), excluding plug-in hybrids. Additional tax exemptions on registration and excise duties reduce total cost of ownership, boosting BEV market share which reached 22.5% in January 2025. Public sector support enhances fleet electrification with €5,000 per vehicle incentives.

Foreign direct investment is significantly shaping domestic battery manufacturing capacity. China Aviation Lithium Battery Technology broke ground on a €2 billion lithium-ion battery plant in Sines in February 2025, initially producing 15 GWh annually—sufficient for about 300,000 EVs—with expansion plans to 45 GWh by 2028. The project is expected to create 1,800 jobs and contribute over 4% to Portugal’s GDP. This facility’s strategic location leverages European lithium reserves, proximity to automotive hubs, and competitive renewable energy costs.

Portugal’s automotive sector is transitioning towards electric vehicle production. Stellantis invested €119 million to convert the Mangualde Production Center into Portugal’s first battery electric vehicle assembly facility. Vehicle models produced include Citroën ë-Berlingo, Peugeot e-Partner, Opel Combo-e, and Fiat e-Doblò. The Portuguese government, via the Recovery and Resilience Plan (PRR) on the Move program, contributed €59.8 million, supporting broader industry electrification. This transformation also strengthens battery integration expertise across suppliers and service providers, fostering sustainable market growth.

Market Segmentation

By Type:

• Lithium-ion Battery: Dominant technology for EV batteries, with growing domestic manufacturing in Portugal.

• Lead-acid Battery

• Others

By Propulsion Type:

• Battery Electric Vehicle (BEV): Focus of government incentives and rapidly increasing market share.

• Plug-in Hybrid Electric Vehicle (PHEV)

By Vehicle Type:

• Two-wheeler

• Passenger Cars

• Buses

• Commercial Light Duty Vehicles: Includes three-wheeler and four-wheeler variants.

• Others

By Region:

• Norte

• Centro

• A. M. Lisboa

• Alentejo

• Others

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Regional Insights

The report identifies multiple key regions including Norte, Centro, A. M. Lisboa, Alentejo, and others. While specific dominant region statistics are not numerically provided, the established automotive production transformation at Mangualde (likely Centro region) alongside infrastructure development and manufacturing hubs indicates their strategic importance in the EV battery market development.

Recent Developments & News

In February 2025, China Aviation Lithium Battery Technology officially broke ground on a €2 billion lithium-ion battery manufacturing plant in Sines, Portugal. The initial annual capacity is 15 GWh, capable of supplying batteries for about 300,000 electric vehicles, with expansion plans to 45 GWh by 2028. This facility marks a major step in solidifying Portugal's role in Europe’s battery supply chain and will generate 1,800 direct jobs upon completion.

Key Players

• China Aviation Lithium Battery Technology

• Stellantis

• Toyota

• Volkswagen

• Ford

• Audi

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