Dutch mining company AMG has become the largest shareholder in London-based Savannah Resources, which develops a lithium project in northern Portugal, after acquiring a 15.77% stake.
The Barroso lithium project consists of four open-pit lithium mines in Portuguese region of the same name which are expected to begin production in 2026. The project is expected to produce enough lithium for around half a million EV batteries annually.
However, it has faced strong opposition from local residents and environmentalists despite being essential to the European Union's ambition to reduce its dependence on countries such as China for key raw materials.
Savannah CEO Emanuel Proenca said the £16 million investment represented a "huge de-risking step", describing AMG as the "ideal partner" because of its own lithium business that serves Europe's battery and electric vehicle sector. AMG and Savannah have also agreed to study the possibility of building a refinery in Portugal or Spain to turn spodumene into lithium carbonate.
The five-year offtake agreement will entitle AMG for 45 000 tons of spodumene a year, extendable to 90 000 tons over 10 years.
Theodor Lisovoy, Editor in Chief, Rough&Polished
