Portuguese Savannah Resources a €110 million to support its proposed lithium mine
The Portuguese government has awarded London-listed Savannah Resources a €110 million ($128 million) grant to support its proposed lithium mine in northern Portugal, providing a significant financial boost to a project that has attracted both government backing and strong local opposition.
Under the agreement, approximately €82 million of the non-repayable funding will be used to cover the project’s initial capital costs in the Barroso region. The remaining amount will be released subject to the company meeting specified operational performance targets.
Savannah says the Barroso deposit contains more than 39 million metric tons of spodumene, a mineral used to produce lithium. The company considers it the largest known spodumene resource of its kind in Europe.
The development is being closely watched as Europe seeks to strengthen its domestic supply of lithium and reduce reliance on imports from China and other overseas producers. Lithium is considered a critical raw material for the energy transition, particularly because of its role in electric vehicle batteries and energy-storage systems.
The project has nevertheless faced sustained resistance from residents and environmental campaigners. Critics have raised concerns about the potential environmental impact of mining in the Barroso area, which has held World Agricultural Heritage status since 2018.
Savannah CEO Emanuel Proença described the grant as another major milestone for the company, saying it demonstrated the Portuguese government’s strong commitment to advancing the project. He added that the funding reflected a broader European effort by governments to support strategically important projects tied to the continent’s net-zero ambitions.
“The scale of the financial commitment being made by the Portuguese state” will make a substantial contribution to the project’s capital requirements, Proença said, as Savannah works toward starting production in 2028.
Portugal’s official gazette states that the grant was approved on January 7 by Secretary of State for the Economy João Ferreira. The funding was awarded under a government incentive program designed to encourage major investments in carbon-neutral industries and sectors considered strategic to the country’s transition to a net-zero economy.
