Savannah Resources, a London-based mining company, has announced a delay in the production start date of its lithium project in northern Portugal. Originally slated to begin operations in 2026, the project is now expected to commence in 2027, citing delays caused by changes in the Portuguese government. The shift occurred after Portugal’s centre-right government took power in March, following the resignation of former Socialist Prime Minister Antonio Costa amid an investigation into alleged irregularities in handling lithium and hydrogen projects.
The company plans to establish four open-pit mines in the Barroso region, with the goal of extracting enough lithium annually to power half a million electric vehicle (EV) batteries. However, Savannah explained that the government’s transition has impacted the project’s timeline, particularly with respect to access to land. The company now expects to complete its definitive feasibility study and environmental licensing by the second half of 2025.
In the meantime, legal proceedings have begun to grant Savannah temporary access to land that it does not yet own to carry out essential fieldwork on its 840-hectare concession area. While Savannah has purchased over 100 plots of land, data from September 2023 showed that the company had acquired or was in the process of acquiring only 93 hectares.
The Portuguese government holds the authority to approve compulsory land acquisitions if deemed necessary, a step Savannah has indicated it may take. The project, facing strong opposition from local residents and environmentalists, is considered a critical test for the European Union’s strategy to reduce reliance on countries like China for vital raw materials.
