Savannah Resources to invest €415 million on lithium ore extraction in Portugal to 2028

UK mining company Savannah Resources is to up its extraction of lithium ore at its mine in Barroso in Boticas, Vila Real to 39 million tonnes in a €415 million investment.

It could be the tipping point for one of the largest lithium mining projects in Europe, said Emanuel Proença, the CEO of Savannah Resources in a podcast with the online news source ECO.

He said it came at a time when “things are really beginning to happen” with a view to start the refining of the ore to produce the metal that is crucial for electric car batteries, in 2028.

The British company, which is listed on the AIM market, has invested €50 million up to this year, and will invest €15 million in 2025 and another €350 million by 2028, he said. The “puzzle” of financing this investment should include a new capital raise on the stock exchange, an “interesting opportunity for us Portuguese to participate in the future success of the project”. In July, an increase of 5.6 million left 25% in the hands of Portuguese investors, including Lusiaves and Mário Ferreira, with 10% each.

Since Savannah took up the project in 2017, the project has generated protests, legal actions, and even an injunction.

Emanuel Proença believes that “this group of people” had managed to “take over media attention for several years and give the impression that the project was dangerous that installed a feeling of fear.”

“With a lot of work on the ground we’ve shown people in the region that these concerns were over exaggerated when they were not really malicious in their intentions or content” and separates “the actions of the opposing group from what are legitimate concerns that should be addressed.”