London-listed Savannah Resources is stepping up development of its flagship lithium project in northern Portugal, betting that scale, longevity and proximity to European markets will help it compete globally and reduce the region’s dependence on Chinese supply chains.
Chief executive Emanuel Proença said progress across engineering, environmental approvals and financing had strengthened confidence that the Barroso project could emerge as a cornerstone of Europe’s battery materials strategy.
Resource expansion boosts long-term outlook
The Barroso deposit—Europe’s largest known spodumene resource—has seen its confirmed reserves increase to more than 39mn tonnes, up from 28mn tonnes. Further exploration suggests additional resources of between 35mn and 62mn tonnes, potentially pushing total resources beyond 100mn tonnes.
Such expansion could extend the mine’s lifespan to over 50 years, more than double earlier estimates, positioning the project as a long-term supplier of lithium for Europe’s energy transition and electric vehicle industries.
Strategic timing amid Europe’s supply concerns
The acceleration comes as Europe intensifies efforts to secure domestic sources of critical minerals, particularly lithium, a key component in battery production. The bloc remains heavily reliant on imports—especially from China—for both raw materials and processing capacity.
Savannah argues that a localised supply chain would not only enhance security of supply but also reduce transport costs and geopolitical exposure. Proença said the project could break even at around $600 per tonne of spodumene concentrate, well below current market prices of above $2,000, suggesting resilience even in weaker commodity cycles.
The project has received a €110mn grant from the Portuguese government, underlining official support for domestic mineral development. A final investment decision is expected by the end of 2026, with construction slated to begin in 2027 and first production targeted for 2028. The company is simultaneously advancing project financing discussions as it prepares for the capital-intensive construction phase.
Local opposition remains a constraint
Despite growing momentum, the project continues to face resistance from local communities. The Barroso region, designated a World Heritage agricultural site in 2018, has been a focal point for environmental and social concerns.
Savannah says opposition is gradually easing as it increases local hiring and expands engagement efforts with residents, though permitting and social licence remain critical risks.
The Barroso project highlights both the opportunity and the challenge facing Europe’s push for mineral independence. While resource potential is significant, translating it into operational capacity requires navigating regulatory hurdles, community concerns and volatile market conditions.
If successful, Savannah’s project could serve as a template for future developments. If delayed, it would underscore the structural constraints that continue to limit Europe’s ambitions in critical raw materials.
