Savannah Resources, a London-based mining company, anticipates a rebound in lithium prices by 2027, aligning with its plans to begin commercial production at its Barroso mining project in Portugal, according to CEO Emanuel Proenca. Lithium, a key material used in electric vehicle (EV) batteries and appliances, has seen an 80% price dropover the past year due to overproduction in China and a reduction in EV demand.
Proenca emphasized that the market’s fundamentals remain strong, predicting a supply deficit from 2027 onward, which fits Savannah’s project timeline. He expressed optimism about global lithium demand, expecting it to grow 2.6 times over the next seven years, with a sharp acceleration starting in 2027.
Savannah aims to bring the Barroso project online in 2027, delayed by a year due to a political change in Portugal. The company plans to build four open-pit mines in the northern Barroso region, extracting enough lithium for half a million EV batteries annually. Despite facing opposition from local residents and environmentalists, Proenca assured that the project would proceed.
His optimism is echoed by Rio Tinto’s CEO, Jakob Stausholm, who recently announced the company’s acquisition of Arcadium Lithium for $6.7 billion, positioning Rio Tinto as a leading global player in lithium mining.
