Savannah Resources has pushed back the expected launch of its lithium production in Portugal to 2027 due to delays stemming from the recent government change. The London-headquartered company, which plans to develop four open-pit lithium mines in the Barroso region, had initially aimed for production to begin in 2026.
The company stated that the shift in government leadership, with Portugal’s center-right administration taking over in March following the resignation of former Prime Minister António Costa, had caused a delay of over six months in project development. The resignation came amid an investigation into allegations of misconduct in the handling of lithium and hydrogen projects under Costa’s government.
“The change in government has notably impacted access to land, slowing down our progress,” Savannah said in a statement. The company now anticipates completing its definitive feasibility study by the second half of 2025, with environmental licensing approvals expected around the same time. As a result, the commissioning of the project and the commencement of production are scheduled for 2027.
Savannah has also begun legal proceedings to secure temporary access to land it does not currently own in its 840-hectare concession area, which is crucial for fieldwork. According to the company, it has acquired over 100 plots from private landowners, though the exact area covered by these acquisitions remains unclear.
The Barroso project has faced strong opposition from local communities and environmental groups, but it remains a key part of the European Union's broader strategy to reduce its reliance on countries like China for essential raw materials. Savannah has previously indicated that if needed, it would seek government authorization for compulsory land acquisitions in the public interest to ensure the project moves forward.
This lithium project is viewed as a significant test of Europe’s ambitions to secure supply chains for critical materials, with Savannah aiming to produce enough lithium each year to power half a million electric vehicles.
The company’s CEO, Emanuel Proenca, shared in May that Savannah had secured several land plots, though recent data from 2023 revealed that only 93 hectares had been acquired or were in the process of being acquired at the time.
