Savannah's Portugal lithium mine project startup pushed back to 2028

The date of first production from Portugal's Barroso lithium project has been pushed back from 2027 to 2028, developer Savannah Resources said Sept. 4 citing a delay in the government's approval process.

London-listed Savannah said in a statement that it had anticipated receiving a vital "land easement" during the summer of 2025, but now expects the approval process to conclude during Q4 2025, after the country's municipal elections, which are scheduled for Oct. 12.

"Taking this into account, the definitive feasibility study is now expected to be delivered in the first half of 2026, versus previous guidance of the end of 2025," it said, pushing back the date for first production.

A more detailed update on scheduling will be provided once the easement has been granted, Savannah said.

The delay is the second significant one in the last 12 months. In September 2024, Savannah pushed back the start date from 2026 to 2027, citing a change of government.

The project has faced significant opposition from local groups, causing it to suspend operations briefly in February 2025 over a land-rights issue.

A United Nations committee found Aug. 22 that Portugal failed to respect citizens' rights to environmental information and to participation in the licensing process.

Barroso is one of the European Commission's "Strategic Projects" under the Critical Raw Materials Act and Europe's largest spodumene lithium deposit.

The resource element of the current drilling program was completed in July with assay results released by Savannah in August updating ore deposits from three sites. Savannah expects to publish new resource estimates in September, it said.

"The project's fundamentals continue to strengthen, backed by compelling economics, strong community and developmental benefits, and official support from Portugal's Trade and Investment Agency in line with Europe's Critical Raw Materials Act. At the same time, lithium market conditions have improved significantly, with demand outpacing supply and prices rising," Savannah's CEO Emanuel Proenca said.

EU strategic status

The announcement comes as the EU intensifies efforts to develop domestic lithium production capabilities to reduce reliance on Chinese imports amid the accelerating energy transition. The Barroso project was in March 2025 included among 47 critical raw materials projects designated as strategic under the EU Critical Raw Materials Act.

Currently, no lithium mines operate within the EU, though five projects including Barroso are in planning or development phases. The strategic designation underscores the project's importance to European supply chain security as lithium demand grows for electric vehicle batteries and energy storage systems.

A 2023 scoping study concluded that Barroso could produce approximately 2.6 million mt of spodumene concentrate grading 5.5% Li2O over a 14-year mine life, with average annual production of around 191,000 mt/year. First production is scheduled to begin in 2027.

The project has already attracted potential financing support, with Savannah announcing in December 2024 that it had received a non-binding letter of interest from German export credit agency Euler Hermes confirming "eligibility in principle" for an untied loan of up to $270 million.

Platts, part of S&P Global Energy, assessed battery-grade lithium carbonate at $9,500/mt CIF Europe on Sept. 3, and lithium hydroxide also at $9,500/mt CIF Europe, both up 15% from a month ago.