Savannah pushes ahead with Barroso lithium project as Europe targets supply independence

As Europe seeks greater critical minerals autonomy for batteries and electric vehicles, London-listed Savannah Resources is moving faster on its flagship lithium project in northern Portugal—betting that scale, long mine life and proximity to European demand can reduce reliance on Chinese supply chains.

Savannah says it is stepping up development of its flagship lithium project at the Barroso deposit, positioning the project as a potential cornerstone of Europe’s battery materials strategy. Chief executive Emanuel Proença said progress across engineering, environmental approvals and financing has strengthened confidence that Barroso could play a major role in the region’s push to secure domestic sources.

Resource growth underpins a longer operating horizon

The Barroso deposit—described as Europe’s largest known spodumene resource—has seen confirmed reserves rise to more than 39mn tonnes, compared with 28mn tonnes previously. Savannah also points to further exploration indicating additional resources of between 35mn and 62mn tonnes, which could lift total resources beyond 100mn tonnes.

If realised through development, that expansion would extend the mine’s lifespan to over 50 years—more than double earlier estimates—and strengthen the case for project as a long-term supplier of lithium into Europe’s energy transition and EV supply chains.

Timing aligned with import dependence and processing constraints

The acceleration comes while Europe intensifies efforts to secure domestic critical mineral supply, particularly lithium, which is central to battery production. The bloc remains heavily reliant on imports—especially from China—for both raw materials and processing capacity.

Savannah argues that building a more localised supply chain would improve security of supply while lowering transport costs and geopolitical exposure. Proença also highlighted economics: the company says the project could break even at around $600 per tonne of spodumene concentrate, well below current market prices above $2,000, suggesting resilience even if commodity conditions weaken.

Government support and an investment timeline toward production

The project has received a €110mn grant from the Portuguese government, reflecting official backing for domestic mineral development. A final investment decision is expected by the end of 2026; construction is slated to begin in 2027; and first production is targeted for 2028.

Savannah is also advancing discussions on project financing as it prepares for what it describes as the capital-intensive construction phase.

Community opposition remains part of the risk picture

Despite growing momentum, Savannah notes that local resistance continues to be a constraint. The Barroso region was designated a World Heritage agricultural site in 2018 and has been at the centre of environmental and social concerns.

The company says opposition is gradually easing as it increases local hiring and expands engagement with residents. Still, permitting requirements and social licence are described as critical risks that could affect timing.

The Barroso project underscores both sides of Europe’s mineral independence challenge: strong resource potential must still be translated into operational capacity amid regulatory hurdles, community concerns and volatile market conditions. If successful, Savannah’s plan could become a reference point for future developments; if delayed, it would highlight structural constraints that continue to limit European ambitions in critical raw materials.