Portuguese company Lifthium Energy has secured a €180 million ($210 million) non-refundable government grant to build a lithium refinery in northern Portugal, strengthening Europe’s push to localise electric vehicle battery supply chains.
The funding was awarded under the European Union’s Temporary Crisis and Transition Framework, which allows member states to provide state aid to accelerate green and industrial transformation. Portugal, which holds around 60,000 metric tonnes of lithium reserves, is currently Europe’s largest lithium producer, though output has historically been directed mainly to the ceramics industry rather than battery applications.
Lifthium, which is 85% owned by Portuguese conglomerate Jose de Mello with the remainder held by its subsidiary Bondalti, plans to construct the refinery in Estarreja, about 50 km south of Porto. Bondalti already operates chemical facilities in the area, providing existing industrial infrastructure for the project.
The refinery is expected to begin operations by 2030 and is designed to produce up to 50,000 tonnes of lithium hydroxide per year, enough to supply batteries for around two million electric vehicles. Lifthium said the plant will use proprietary technology aligned with European environmental and industrial standards.
Lifthium CEO Duarte Braga said the project was advancing cautiously amid a more challenging lithium market and tougher industrial conditions in Europe. He noted that while the public grant is significant, the company’s next priorities are securing a strategic partner and finalising market and financing arrangements before making a final investment decision.
In addition to the Estarreja facility, Lifthium is also considering the construction of a second lithium refinery in Spain.
The announcement comes as Portugal’s government prepares to launch a long-delayed tender for lithium prospecting licences, a move seen as critical to developing a domestic lithium value chain and reducing Europe’s reliance on imports, particularly from China.
