London‑listed Savannah Resources is accelerating work on its lithium project in Portugal, increasingly confident it can be globally competitive and help to reduce Europe’s reliance on Chinese supplies of the metal used to manufacture batteries, CEO Emanuel Proença told Reuters on Tuesday.
Confirmed resources at the Barroso deposit of spodumene – a lithium‑bearing mineral – in northern Portugal were raised in September to over 39 million metric tons, from 28 million metric tons, which was already Europe’s largest.
Proenca said potential extensions of 35 million to 62 million metric tons could push resources above 100 million metric tons and more than double the mine’s projected lifespan to more than 50 years.
“Work has accelerated in recent months on all fronts … with each project milestone, we become more and more confident it can be highly competitive on a global scale, even in difficult market conditions,” Proença said, citing progress in engineering studies, meeting of environmental requirements and preparing project finance for the construction phase.
A 110 million euro grant from the Portuguese government was also “a positive step.”
A final investment decision is expected by the end of the year, with construction planned for 2027 and first production in 2028.
Europe aims to reduce reliance on Chinese lithium as it shifts away from fossil fuels, but its own extraction and refining capacity remains limited.
Proença said the project could break even at $600 per ton of spodumene concentrate, “allowing it to compete with the majors”, while supplying raw materials closer to Europe’s refineries and “reducing it’s reliance on other countries, especially China.” Spodumene shipped to China is now trading above $2,000.
The project has faced local opposition since Barroso became a World Heritage agricultural site in 2018, though the CEO said it was “gradually decreasing” as the company hires locally and steps up engagement with the local population.
(By Sergio Goncalves; Editing by Andrei Khalip and David Gregorio)
