Savannah Resources is on the verge of signing a second sales agreement for its Barroso lithium project located in northern Portugal. This upcoming contract is a pivotal step towards securing project financing, as lenders require that 70-75% of the future production from Barroso be contracted under long-term supply agreements. The first sales contract was signed in June 2024, covering 45,000 tonnes of spodumene concentrate annually over five years, which accounts for approximately 25% of the planned production volume.
The Barroso project boasts over 39 million tonnes of spodumene resources, making it the largest mineral deposit in Europe. Further exploration could potentially increase these resources to over 100 million tonnes, thereby extending the mine’s operational lifespan beyond 50 years. Construction of the project is progressing on schedule, with an expected launch in 2027 and production set to commence in 2028.
The strategic importance of the Barroso project lies not only in its substantial resource base but also in its potential to contribute significantly to Europe’s lithium supply chain, which is increasingly critical as the region moves towards more sustainable energy solutions and electric vehicle production. With the growing demand for lithium, Savannah Resources is positioning itself as a key player in the European market, aiming to meet the needs of battery manufacturers and other industries reliant on this essential mineral.
