- First lithium could be produced by end-2026
- Eur40 million invested to date
- Mining projects aim to integrate with domestic refineries
Lithium developer Savannah Resources’ Barroso lithium project in Portugal will require up to Eur350 million ($374.7 million) of new direct investment, Savannah CEO Emanuel Proenca said in a June 16 televised interview with Portugal’s public broadcaster RTP.
The company expects to have its final environmental license approved by early 2025 and to start work in 2025, he said, adding that first lithium could be produced by the end of 2026.
Following a positive environmental impact assessment in May 2023, Savannah has been working to fulfil the conditions and expects to contract engineering services at the end of 2024, he said.
Once online, the Barroso mine could produce enough lithium spodumene to supply 500,000 electric vehicles annually, Savannah estimates.
Savannah said in March it found concentrations of 1.45%, 1.65% and 1.85% of LiO2 at various depths at Barroso.
In November 2023, Savannah received several positive responses from potential financial partners for the project.
To date, Savannah has invested Eur40 million in Barroso, which is one of two advanced lithium projects in Portugal along with Lusorecursos' Eur650 million Montalegre project, which aims for first production by 2027 and is set to include an on-site lithium refinery.
Both mines could be vertically integrated with other projects, as Portugal is currently contemplating three downstream projects -- a refinery by Portuguese group Galp and Sweden’s Northvolt; a 15 GWh battery plant at Sines by China’s CALB, and a green lithium refinery by Bondalti.
Portugal could become one of Europe’s largest lithium producers, with an estimated 270,000 mt of reserves, according to US Geological Survey estimates.
Platts, part of S&P Global Commodity Insights, assessed both battery grade lithium carbonate and hydroxide at $13,750/mt CIF Europe on June 14, down 13% and 13.5% respectively since the start of 2024.
Platts Connect: News & Insights (spglobal.com)
