Emanuel Proenca, CEO of London-based Savannah Resources, expects the price of lithium to rebound by 2027 in time for the commissioning of its Barroso project in Portugal.
"The fundamentals are stronger than ever. The market will very likely come back into [supply] deficits from 2027 onwards and that actually fits very well with what we are doing and with our timeline," Reuters quotes Proenca as saying.
Savannah expects to bring the Barroso project onstream "as early as possible in 2027", he added. Acknowledging that the period of depressed prices was lasting "slightly longer than we would expect", Proenca expected global lithium demand to grow by 2.6 times in the next seven years "with an acceleration from 2027, which will be very difficult to satisfy by supply."
Just recently, Savannah has announced a delay in commissioning of its Barroso lithium project to 2027 due to changes in Portuguese government. The company hoped to start production in 2026. However, the previous Portuguese government led by socialist prime minister Antonio Costa was accused of wrongdoings associated with lithium and hydrogen projects in the country.
Prices of lithium, a critical mineral for the green transition, have fallen more than 80% in the past year largely due to overproduction from China and a drop in demand for electric vehicles. However, Proenca believes that the EV market was still growing at a strong pace despite some concerns about future demand.
Theodor Lisovoy, Managing Editor, Rough&Polished
