Savannah Resources shifts Barroso timeline to July

Savannah Resources (LON: SAV) said Monday it now expects to complete key studies and environmental compliance for its Barroso lithium project in Portugal in July.

The revised timeline marks a slight delay from the company’s earlier target of completing the definitive feasibility study and environmental compliance process (RECAPE) by the end of June. 

Savannah still expects to receive the final environmental licence in the third quarter of 2026 and make a final investment decision by year-end, with production targeted for 2028.

Chief executive Emanuel Proença said the company can meet required standards without waiting for additional geotechnical and resource data from outstanding fieldwork, which will instead feed into future engineering studies. He said the decision followed validation from technical consultants and project finance advisers.

The Barroso lithium project has been designated as “strategic” under the European Critical Raw Materials Regulation and Savannah considers it to be Europe’s largest spodumene deposit. 

The company said it is finalizing metallurgical testing and has begun noise modelling as part of the environmental compliance process, adding that a favourable lithium market supported its decision to proceed without further field data at this stage.

Competitive project

Savannah plans to develop four open-pit mines capable of producing enough lithium annually to supply batteries for about 500,000 electric vehicles. Proença has said the project can break even at lithium prices of $600 a tonne, positioning it to compete with larger producers while offering shorter, more secure supply chains to European customers.

The company is advancing a tender for detailed engineering and expects to select a partner in the coming weeks. It is also awaiting authorization for temporary land access to complete additional fieldwork, which will be incorporated into future studies.

Portugal has long mined lithium for ceramics but has yet to produce battery-grade material at scale. The government recently awarded Savannah a €110 million ($128 million) grant to advance the project.

Despite its strategic importance, Barroso has faced strong opposition from local residents and environmental groups, as the region has been recognised as a World Heritage agricultural landscape since 2018.