What's Happening?
Savannah Resources has increased its lithium reserve estimate at the Barroso mine project in northern Portugal by 40%, following additional prospecting work. The reserves now stand at over 39 million metric tons, up from the previous 28 million metric tons, making it the largest lithium deposit in Europe. The company plans to build four open pit mines to produce lithium for electric vehicle batteries, with production expected to start in 2027. Despite the strategic importance of the project, Savannah faces opposition from local residents and environmentalists due to its location in a World Heritage site.
Why It's Important?
The expansion of lithium reserves at the Barroso mine is significant for Europe's efforts to reduce dependence on imports for critical materials needed in the transition to renewable energy. The project could play a crucial role in supporting the battery value chain for electric vehicles, contributing to the region's economic growth and sustainability goals. However, the opposition from local communities highlights the challenges of balancing resource extraction with environmental and cultural preservation.
What's Next?
Savannah Resources will continue to work on the project's feasibility study and environmental licensing process, aiming for completion by the end of the year. The company must address concerns from local stakeholders to ensure the project's viability and acceptance. The success of this project could influence future mining ventures in Europe and set precedents for managing environmental impacts.
