A long-running dispute over lithium mining in northern Portugal has reached the European Court of Justice. On 5 February, residents’ association Associação Unidos em Defesa de Covas do Barroso (UDCB) and environmental law organisation ClientEarth filed a legal challenge against the European Commission’s decision to grant the Barroso lithium project “strategic” status.
The groups argue that the Commission failed to reassess the project after new evidence emerged of potential environmental, social, and safety risks, including threats to water resources, biodiversity, and local livelihoods.
Critical Raw Materials Act Under the Spotlight
The case revolves around the EU’s 2024 Critical Raw Materials Act, which designates certain projects as “strategic”. This label grants faster permitting, easier financing, and reduced administrative hurdles to secure key raw materials for the green economy, including electric vehicles and batteries.
The Barroso site, near Boticas in Trás-os-Montes, sits atop what is considered Europe’s largest known spodumene deposit, a key source of lithium used in batteries and mobile devices. Yet it lies within an ecologically sensitive landscape, recognised by the UN’s FAO as a “Globally Important Agricultural Heritage System”.
Commission Stands Firm Despite Opposition
The European Commission listed Barroso among 47 “strategic” projects across the EU. Campaigners requested its removal in June, but the Commission rejected the appeal in November, arguing that compliance with EU environmental law is primarily the responsibility of Portuguese authorities.
Officials confirmed Barroso’s continued strategic status, citing mitigation and monitoring measures designed to limit pressure on local water resources, despite ongoing opposition from environmental groups. UDCB and ClientEarth warned that treating the project as being in the public interest while ignoring documented risks undermines fundamental EU legal principles and risks turning rural regions like Barroso into “sacrifice zones” for the energy transition.
Europe’s Race for Battery Materials
The dispute highlights Europe’s effort to reduce dependence on foreign suppliers, particularly China, for critical raw materials needed for climate and industrial goals. Portugal’s government has backed the project, awarding €110 million to developer Savannah Resources. The mine could potentially produce enough lithium annually to supply hundreds of thousands – up to one million – electric vehicle battery packs, positioning it as one of the EU’s largest proposed sources of lithium.
Balancing Environmental Risks and Energy Needs
Lithium extraction is water-intensive and poses contamination risks. Critics argue that the economic and strategic case for lithium does not justify potential environmental harm. Savannah Resources maintains that design improvements and monitoring measures have significantly reduced risks to surface and groundwater and ensure compliance with EU water protection laws.
A Test Case for Europe’s Energy Transition
The Barroso case represents a litmus test for the European Court of Justice. Its decision could shape how the EU balances strategic mineral needs against local opposition and environmental protection, and set precedent for other mining projects granted strategic status under the Critical Raw Materials Act. The ruling will signal whether commercial and energy transition priorities will override environmental safeguards, or if rural communities and ecosystems will be protected from being turned into “sacrifice zones” in Europe’s green push.
