Portugal has won backing from the European Union for a major clean-technology venture: a new facility dedicated to producing materials essential for lithium-ion batteries.

The project is one of 61 selected by the European Commission under a €2.9 billion funding package supporting “cutting-edge, zero-impact technology projects” designed to curb carbon dioxide (CO₂) emissions.

Portugal’s entry, the NEXTGEN CAM initiative, will focus on manufacturing LNMO (lithium-nickel-manganese oxide) cathode material — a key component in rechargeable lithium-ion batteries used in electric vehicles and renewable energy storage systems.

The Commission describes NEXTGEN CAM as a “pioneering industrial unit” that will enhance Europe’s battery supply chain and advance the continent’s energy transition. The exact location of the plant in Portugal has not yet been announced.

This represents the country’s second major industrial project linked to lithium batteries, following the €2 billion investment by Chinese firm CALB in a plant located in Sines.

Funding for NEXTGEN CAM will come from the EU’s Innovation Fund, which is financed through revenues generated by the Emissions Trading System (EU ETS). The project falls under the ‘clean manufacturing’ category, reserved for initiatives with capital expenditure exceeding €2.5 million that develop components for renewable energy, storage, heat pumps, or hydrogen technologies.

Paul Stannard, chairman and founder of 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 allocated €774 million in total. These include six projects producing renewable-energy components, four in battery recycling, and one focused on 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 a drive to reinforce Europe’s technological leadership and accelerate the adoption of innovative decarbonisation solutions.

Overall, the 61 chosen projects span 19 industrial sectors across 18 countries, covering energy-intensive industries, renewable energy, sustainable transport, energy-efficient construction, clean-tech manufacturing, storage, and industrial carbon management.

According to European Commission estimates, these initiatives could collectively prevent around 221 million tonnes of CO₂-equivalent emissions during their first decade of operation — roughly the same as the annual emissions of 9.9 million European cars.

Funding allocations for each project are expected to be confirmed in the first half of 2026.

‍

About Portugal Investment Owners Club

The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.

About Portugal Pathways

‍‍Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal

‍

Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.

‍