Savannah Resources (LSE:SAV) CEO Emanuel Proença says the Barroso Project, located in Portugal, will become one of the anchors of Europe’s battery materials supply chain.
“You cannot build a successful value chain if you don’t have a few anchors,” Proença tells Mining.com.au.
Demand for electric vehicle (EV) batteries has grown in recent years, and the European Union (EU) is struggling to meet this demand through domestic production alone.
The EU is currently highly dependent on imports of lithium, as it produces less than 0.1% of global lithium mine production and has limited production of refined lithium for batteries. According to the European Commission, EU demand for lithium is expected to reach 58,000 tonnes per year in 2030.
Proença explains that the Barroso Project, alongside the Keliber Lithium Project in Finland, is helping build the EU’s battery materials value chain.
“The missing element is the refineries here, which will be developed much faster now that there is clear visibility on more feedstock sources,” he says.
“So I think that these projects help a lot and it comes at a good moment.”
Savannah recently completed a Definitive Feasibility Study for the Barroso Project, which outlines a 14-year mine life, producing 2.56 million tonnes (Mt) of spodumene concentrate. Phase one production is estimated to provide enough lithium for more than 7 million EV batteries, based on a 20Mt probable reserve.
Barroso’s activities advancing
As previously reported, Proença told this news service that the company is putting all of its focus into getting Barroso into production. The company is advancing commercial discussions, alongside preparing construction and recruiting key personnel.
“The sooner we are in production, the faster we become part of the ecosystem that delivers and helps accelerate this industry,” he adds.
“The 21st century is much more about electrons and batteries and we want to be a part of that. We know that there is a lot of value in delivering as well and as fast as possible — scale can come afterwards.”
This news comes after the company highlighted Barroso’s resource growth potential, which it plans to assess after construction is complete and the project enters production.
“If you look at the numbers, the reserve outlined in the Feasibility Study is 20 million tonnes. The resource is already twice that right now, and the additional exploration target could position the project at five times that,” Proença explains.
Savannah Resources is a mineral resource developer that wholly owns the Barroso Project, one of the largest battery-grade spodumene lithium resources outlined to date in Europe.
The Barroso Project has a resource of 39Mt @ 1.05% lithium oxide for 411,900 tonnes across five ore bodies.
Write to Aaliyah Rogan at Mining.com.au
Images: Savannah Resources
