London-listed Savannah Resources is pressing ahead with its Barroso lithium project in northern Portugal with growing confidence that the deposit — already Europe’s largest — can compete globally and become a meaningful contributor to reducing the continent’s dependence on Chinese lithium supply.
Speaking to Reuters on Tuesday, Chief Executive Emanuel Proença said work had “accelerated in recent months on all fronts,” pointing to advances in engineering studies, progress on environmental requirements and preparations for project financing ahead of a final investment decision expected by the end of this year. Construction is planned for 2027, with first production targeted in 2028.
Confirmed resources at the Barroso spodumene deposit were upgraded in September to over 39 million metric tonnes, up from 28 million metric tonnes. Proença said potential resource extensions of between 35 million and 62 million metric tonnes could push the total above 100 million metric tonnes, more than doubling the mine’s projected operational lifespan to over 50 years. The company has also received a €110 million grant from the Portuguese government, which Proença described as “a positive step” in the project’s financial development.
On competitiveness, Proença said Barroso could break even at $600 per tonne of spodumene concentrate — a level he said would allow it “to compete with the majors” — at a time when spodumene shipped to China is trading above $2,000 per tonne. The project’s proximity to European refineries was cited as a further structural advantage, reducing logistical costs and supply chain exposure to China.
Europe’s push to build domestic lithium extraction and refining capacity remains constrained, and Barroso is widely regarded as one of the continent’s best near-term prospects for closing that gap. However, the project has faced local community opposition since Barroso was designated a World Heritage agricultural site in 2018. Proença acknowledged the tension but said resistance was “gradually decreasing” as the company increases local hiring and intensifies engagement with surrounding communities.
