London-listed Savannah Resources announced plans to expedite its lithium mining project in northern Portugal, aiming for first commercial output by 2027. The company remains optimistic despite recent declines in lithium prices and uncertain demand, viewing these challenges as temporary, it stated on Thursday.
Global lithium producers have scaled back operations amid a 90% price drop over the last two years, driven by increased supply and weaker-than-expected demand for electric vehicle (EV) batteries. However, Savannah’s chairman, Rick Anton, expressed confidence in the long-term prospects, emphasizing that the company has “all the key elements in place to significantly advance the project.”
The Barroso mine, located in Portugal’s northern region, is set to feature four open-pit mines, with an annual output sufficient to produce batteries for approximately 500,000 EVs. Anton highlighted the company’s focus on progressing the project swiftly, capitalizing on favourable market conditions and higher prices anticipated in the future.
Savannah’s optimism is bolstered by global carbon emissions reduction laws and the dominance of lithium-ion batteries as the preferred energy storage solution. Despite being in a pre-production phase, the company considers itself insulated from current market volatility and committed to delivering Europe’s largest spodumene deposit, which boasts estimated reserves of 28 million metric tons of high-grade lithium.
The project is pivotal for the European Union’s efforts to reduce reliance on strategic raw materials from countries like China. However, it faces local opposition from residents and environmental groups, testing the EU’s ambitions for domestic resource independence.
