The firm is investing around €156 million in the plant and has also received support from the Portuguese government.

The plant is being built on a 30,450-square meter plot of land belonging to the Renault CACIA gearbox assembly plant, chosen for its easy access to road, rail, sea and air transportation.

'The Cacia plant will be one of three facilities in Europe supplying batteries to electric vehicles produced by the Alliance, starting with the 100% electric Nissan LEAF. Together, the three plants will enable the Alliance to rollout electric vehicles in Europe on an unprecedented scale, bringing the world one step closer to a zero-emission future,' said Nissan's chief operating officer Toshiyuki Shiga.

The facility will start operations in December 2012 and will have a total capacity of 50,000 units a year.

Last April, Nissan began construction of a battery plant in Sunderland in the UK, which will start operations in early 2012 with an annual capacity of 60,000 units. Renault's battery plant in Flins, France will have a total production capacity of 100,000 units a year.

Philippe Klein, Renault's executive vice-president of corporate planning, product planning and programs, said: 'The inauguration of the Cacia battery plant is another concrete step in the electric mobility revolution spearheaded by the Alliance. The plant will supply batteries for one of the four electric vehicles in the Renault ZE range, Fluence ZE, which will be launched in autumn 2011.'