Savannah Resources has been awarded a non-reimbursable grant of up to approximately €110 million from the Portuguese State to support construction of its flagship Barroso lithium project in northern Portugal. The project has been designated as strategic under the European Union’s Critical Raw Materials framework.
The funding represents one of the largest public financial contributions to a mining project in Portugal and reflects support from both national and European authorities for the development of a domestic lithium supply chain linked to the energy transition. Barroso is Europe’s largest known spodumene lithium deposit and is viewed as a cornerstone asset for strengthening regional battery raw material security.
According to Savannah, the grant will be provided under Portugal’s Investments in Strategic Sectors Incentive Scheme and falls within the contractual investment regime for large-scale projects considered critical to carbon neutrality and economic transformation. The funding is backed by national resources and the European Commission’s Temporary Crisis and Transition Framework.
The €110 million grant is split into two parts. Around 75%, or €82.25 million, will support initial capital expenditure, while the remaining €27.42 million is tied to operational performance milestones once the mine enters production. The funding is non-repayable but subject to specific conditions and project timelines.
The award will be formalized through an investment agreement with AICEP, following approvals from the Compete 2030 programme and the Ministry of Economy and Territorial Cohesion. Savannah said it expects the first tranche of funding to be drawn alongside the initial capital development phase.
Chief executive Emanuel Proença said the grant marks a major milestone for both Savannah and the Barroso project, significantly strengthening its capital structure as the company targets first production from 2028. He added that the project is expected to deliver broad economic and social benefits, including job creation in the Barroso region, the development of a new industry in Portugal, and improved European energy independence through locally sourced lithium.
Chief financial officer Henrique Freire noted that the grant enhances the project’s financial position ahead of a final investment decision expected later this year, as Savannah continues to advance discussions on debt financing and strategic partnerships.
