London-based Savannah Resources has postponed the expected start of its lithium production in northern Portugal to 2027, citing delays caused by recent government changes. The company, which aims to develop four open-pit lithium mines in the Barroso region, had initially planned to begin production in 2026. The mines are projected to supply enough lithium annually to power around half a million electric vehicle batteries.
The delay follows the ascension of Portugal’s centre-right government in March, replacing the administration of former Prime Minister António Costa, who resigned amid an investigation into the handling of lithium and hydrogen projects. Savannah noted that the change in government has delayed the project by over six months, with access to land becoming a key obstacle.
Savannah now expects to complete its definitive feasibility study by the second half of 2025, alongside environmental licensing confirmation. The company anticipates commissioning and first production to begin in 2027.
Legal proceedings have been initiated to grant Savannah temporary access to land within its 840-hectare concession area, necessary for further fieldwork. While the company has acquired over 100 plots, only 93 hectares had been secured as of September 2023. Savannah has reiterated its intent to request compulsory land purchases from the government if necessary.
The lithium project has faced strong opposition from local residents and environmentalists. The outcome of this project is seen as critical for the European Union’s goal to reduce reliance on countries like China for essential raw materials.
