Co-funded by the
European Union
Mina do Barroso Lithium
Supplying European lithium for Europe’s energy transition.
With domestic battery manufacturing forecast to reach 800GW in Europe and the EU currently wholly reliant on imported battery-grade lithium raw material in an increasingly competitive global market, now is time for responsible production from Europe’s own lithium resources.
By responsibly producing lithium raw material from its Barroso Lithium Project in Portugal and commiting to minimise its carbon footprint, Savannah is set to be a key player in Europe’s new lithium value chain, vital to the region’s energy transition and climate change goals.
Early stage
The need
Europe’s demand for lithium is expected to grow 60x by 2050, but there is no domestic production of battery grade lithium raw material. With global competition set to grow significantly, the European Commission has identified the need to secure stable supplies of responsibly produced feedstocks.
The solution
Mina do Barroso will produce enough lithium raw material for 0.5 million vehicle battery packs each year, could be in operation for over a decade, employ over 200 people, and create hundreds more indirect jobs. The high proportion of renewables in Portugal’s energy mix, the location close to market, the electrification of an on-site mining fleet and the sole use of renewables means that power lithium from Mina do Barroso will have a low carbon footprint in the value chain.
The value proposition
- A ‘shovel ready’, domestic solution to Europe’s growing demand for lithium. In an economic scoping study completed in 2018, the project’s after-tax net present value was estimated at US$241m and its after-tax internal rate of return at 48.6%.
- A successful transition from the current development phase into production and cash flow should generate significant value accretion, not only for investors, but also for society with the creation of long term direct and indirect jobs and new demand for multiple goods and services.
