Savannah Resources (LON: SAV) has increased the reserve estimate for its flagship Barroso lithium project in northern Portugal by 40%, strengthening its role as Europe’s largest spodumene deposit.
Following additional prospecting work, reserves are now pegged at more than 39 million tonnes, up from 28 million tonnes. The announcement pushed Savannah’s shares up 2.4%, giving the London-listed company a market value of £104 million ($141.5 million).
Savannah highlighted the project’s importance to Europe’s battery value chain, noting its potential as both a strategic supplier of raw lithium and a long-term contributor to regional economic development. The company plans to develop four open-pit mines capable of producing enough lithium annually to power batteries for around 500,000 electric vehicles. Subject to permitting and financing, production is expected to start in 2027.
At full operation, the mine is forecast to process 1.5 million tonnes per year over a 14-year lifespan, based on a resource of 20.5 million tonnes grading 1.05% lithium oxide.
However, the project has drawn strong opposition from local communities and environmental groups. The Barroso region, recognized as a World Heritage agricultural site since 2018, has raised concerns over potential impacts on land, water resources, and biodiversity.
Savannah said it expects to complete its definitive feasibility study and secure environmental licensing by the end of the year. The company also dismissed recent media reports claiming a United Nations committee had accused Portuguese authorities of breaching international law during the project’s approval process.
