Chinese manufacturer CALB plans to build a lithium-ion battery plant in Portugal, the Portuguese environmental agency APA reported.
Portugal has Europe's largest reserves of lithium, the main element in the batteries that power electric cars.
The factory in the coastal city of Sines, about 100km south of the capital Lisbon, is due to be operational by the end of 2025.
It will "serve the high demand from customers, mainly in the automotive industry," APA said on its website.
A public consultation on the project will be held by the end of February.
The €2.2 billion CALB project will involve the construction of five buildings and create about 1,800 direct jobs, Portuguese media reported.
Currently, most electric vehicle batteries are lithium-ion, made using lithium, cobalt and nickel.
Replacing vehicles with internal combustion engines, which rely on fossil fuels, with electric ones is part of the transition to green energy that is high on the global agenda. /BGNES
