As Europe races to secure its position in the global energy transition, Savannah Resources is emerging as a critical player in the continent’s efforts to establish a domestic lithium supply chain. With production from its flagship Barroso Lithium Project in northern Portugal targeted for 2027, Savannah aims to become a leading producer of lithium concentrate in Europe—just as demand from electric vehicles (EVs) and energy storage systems is poised to surge once again.
Navigating a Volatile Lithium Market
Despite recent price turbulence and investor hesitation across the lithium sector, Savannah’s CEO Emanuel Proença remains confident. Speaking in a recent interview, he highlighted that while lithium prices are near cyclical lows, global demand still grew over 25% in 2024, with long-term fundamentals underpinned by electrification trends.
“We’ve seen booms and busts, and right now we’re likely at or just past the bottom. But demand hasn’t slowed down—if anything, new sectors like battery storage are adding pressure.”
This long-term view positions Savannah to benefit from a projected rebound in lithium prices—analysts expect a recovery to $1,500–$2,000/ton around the time Barroso enters production.
The Barroso Lithium Project: A European Standout
The Barroso project is among the most advanced hard rock lithium ventures in Europe. In its initial phase, it aims to produce 200,000 tons of spodumene concentrate annually at 5.5% lithium content—a scale reminiscent of Australian success story Pilbara Minerals in its early days.
With a defined resource of 28 million tons and mineralization open in multiple directions, the project offers both scale and growth potential. Key operational advantages include:
- Low strip ratio of 6:1, described by Proença as “one of the best in the sector”
- Recovery rate of 73%, nearing industry-leading standards
- Access to skilled labor and renewable energy, enhancing ESG credentials
- Potential by-product revenue from quartz, feldspar, and mica for regional ceramics and insulation industries
Building a European Lithium Ecosystem
The European Union’s Critical Raw Materials Act has accelerated policy and funding support for strategic mining projects. As Europe looks to reduce its dependence on Chinese-dominated battery supply chains, the Barroso project is being hailed as a flagship initiative.
“If this were a football match, we’d be in the 15th minute of the first half—and China already scored. But Europe still has a lot of game left to play.”
— Emanuel Proença
Savannah has already seen strong institutional support:
- A letter of intent from Germany’s KfW development bank, backed by Allianz Trade
- Strategic designation under the EU’s raw materials initiative, unlocking favorable financing
- First offtake agreement with AMG Critical Materials, who also became a shareholder, lending both credibility and commercial momentum
Community Engagement: A Core Strategy
Mining in Europe often faces social challenges, but Savannah’s approach emphasizes transparency and inclusion. The Barroso site—located in an economically underserved region—requires no residential relocations, and hiring is already underway.
“The community understands we’re here to do something positive. This project is becoming more Portuguese, more accepted.”
Local ownership is also growing, with Portuguese shareholders now holding 25% of the company—a rarity for mining projects in the region.
Roadmap to 2027
Savannah plans to complete its Definitive Feasibility Study by late 2025, followed by construction in 2026 and production start in 2027. The project is largely permitted, with land control being the final key focus.
Even at current lithium prices, Proença says the project remains viable. “Our break-even sits around $600/ton. We’re aiming to land right in the middle of the global cost curve—but in Europe.”
Investment Case: Why Savannah Stands Out
Savannah Resources presents a compelling investment story built around timing, location, and policy tailwinds:
- Strategic European positioning aligns with policy goals of supply independence
- Production aligned with expected market upswing
- Cost-competitive operation with strong recovery and strip ratios
- Validation from commercial partners and EU institutions
- Social license and local support offer smoother development
Europe’s Lithium Moment
As the EU’s green industrial strategy matures, securing critical mineral supplies has gone from aspirational to imperative. Europe’s decision to re-enter mining after decades of hesitation signals a sea change in economic policy—one that could elevate Savannah Resources as a cornerstone of the continent’s lithium future.
Or, as Proença puts it:
“Europe might not be fast, but it delivers—and this project is part of that delivery.”
