Savannah Resources Develops Europe’s Largest Lithium Deposit in Portugal

London-based company Savannah Resources is intensifying efforts to develop its lithium project in northern Portugal, in the Barrosa area, demonstrating significant potential for the international market.

This is reported by AgroReview

Lithium Resources and Strategic Importance for Europe

Spodumene, the main mineral of the deposit, is a key raw material for battery production. As of September 2025, the confirmed reserves of this deposit have increased to over 39 million tons, compared to the previous 28 million tons. This has granted Barrosa the status of the largest lithium deposit on the European continent among similar sites.

CEO of Savannah Resources Emanuel Proença is confident that the project’s potential is far from exhausted.

“Additional resources ranging from 35 to 62 million tons could more than double the lifespan of the future mine — to over 50 years.”

As the company leader notes, the project’s progress has significantly accelerated recently in several areas: geological surveys, design, compliance with environmental standards, and preparation for financing to commence construction.

• Project design
• Compliance with environmental requirements
• Preparation for construction financing

Investments, Prospects, and Challenges

Thanks to the gradual execution of each stage, the Savannah Resources team is confident that the deposit will remain competitive even amid global instability.

An additional incentive for investors has been the Portuguese government’s decision to grant the project €110 million. The company hopes to make a final investment decision by the end of the current year. According to the plan, construction work will start in 2027, and lithium extraction will begin in 2028.

The project is significant for the European market as it will reduce the region’s dependence on lithium imports, especially from China. Europe’s own capabilities for lithium extraction and processing remain limited, so the new deposit could significantly impact the situation.

Proença emphasized that the project features a sustainable economy. The breakeven point is around $600 per ton of spodumene concentrate, allowing for profitability even at low prices and competition with key market players. For comparison, today the price of spodumene from China exceeds $2000 per ton, creating favorable conditions for European producers.

Another advantage will be the reduction of logistics costs and the provision of raw materials to European processing plants, which will decrease dependence on imports.

The project also faces certain challenges. Since 2018, it has raised concerns among the local population, as the Barrosa area is part of UNESCO’s agricultural heritage sites. Some community members fear the negative impact of mining activities on the environment and traditional ways of life.

However, according to Savannah Resources’ management, the situation is gradually stabilizing. The company has intensified dialogue with local residents and is involving them in the project’s implementation, which has already led to a decrease in community resistance.