London-based mining company Savannah Resources stated on Monday it was discussing with several major European industrial groups, consisting of automakers, as it prepares to start commercial lithium production in northern Portugal in 2021.
Portugal is Europe’s biggest lithium producer, however its miners sell almost only to the ceramics industry and are only now planning to produce the higher-grade lithium that is utilized in electric cars and to power electronic appliances.
Savannah currently mines feldspar, quartz and pegmatites in Barroso, a mountainous region located in the north of Portugal.
In a statement sent to Reuters, Savannah stated commercial production of lithium concentrate was planned to start in 2021, with the first full year of production in 2022 “to coincide with the expected boost in demand for lithium for European electric vehicle production”.
“Savannah is in offtake and investment discussions some of the major European industrial groups including automakers and with a series of other international groups,” the company stated.
Interest in lithium mining has been spurred by expected rise in sales of electric vehicles, which are cheaper to operate and more environmentally friendly compared to other cars.
But Portugal will face extreme worldwide competition, and warnings of a bubble and oversupply have pushed down lithium prices.
The government is finalizing strategies for an international licensing tender for lithium exploration to begin this year, regardless of objections from environmental groups.
Last month, hundreds of people protested in Lisbon in opposition to lithium mining. A petition signed by thousands stated the Barroso project would cause irreversible damage, from soil pollution to destruction of the natural habitat of different endangered species.
Barroso was declared a world agricultural heritage region in 2018 by the United Nations’ Food and Agriculture Organization.
