Portugal secures key role in €2.9 billion EU clean-tech initiative

The project is one of 61 selected by the European Commission to receive backing under a €2.9 billion programme designed to accelerate the reduction of carbon dioxide (CO₂) emissions across Europe.

Portugal’s contribution, known as the NEXTGEN CAM initiative, will specialise in the manufacture of lithium-nickel-manganese oxide (LNMO) cathode material — a critical component for rechargeable lithium-ion batteries used in electric vehicles and renewable energy storage systems.

Described by the Commission as a “pioneering industrial unit”, NEXTGEN CAM is expected to strengthen Europe’s battery supply chain and support the continent’s transition to sustainable energy. The precise location of the facility within Portugal has not yet been revealed.

If completed, it would represent the country’s second major lithium battery investment, following Chinese company CALB’s €2 billion factory project in Sines.

Funding for NEXTGEN CAM will be provided through the EU Innovation Fund, which is financed by revenues from the Emissions Trading System (EU ETS).

The initiative falls under the Fund’s ‘clean manufacturing’ category — a stream reserved for industrial projects with capital investment above €2.5 million that contribute to renewable energy production, energy storage, heat pumps, or hydrogen technologies.

Credits: Supplied Image; Author: Client; Brussels is allocating €2.9 billion to what it calls “cutting-edge, zero-impact technology projects”

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 round, 11 projects have secured grants worth €774 million, covering six renewable energy component facilities, four battery recycling operations, and one focused on energy-intensive industrial components.

The announcement follows the EU’s first dedicated call for zero-impact technology proposals, launched in December 2024 to promote Europe’s technological leadership and fast-track innovative decarbonisation solutions.

Credits: Supplied Image; Author: Client; Portugal is a leader in Europe’s push for clean energy

In total, the 61 approved projects span 19 industrial sectors across 18 countries, addressing areas such as renewable energy, sustainable transport, energy-efficient construction, storage systems, industrial carbon management, and clean-tech manufacturing.

According to European Commission estimates, these initiatives could collectively avoid around 221 million tonnes of CO₂-equivalent emissions during their first decade of operation — roughly equal to the annual emissions of 9.9 million European cars. Final funding agreements for each project are expected in the first half of 2026.

International investors can participate in Portugal’s expanding clean-tech and innovation economy through the Golden Visa residency-by-investment programme.

Arrange a discovery call with Portugal Pathways’ expert team to learn more.