Dutch mining company AMG has acquired a 15.77% stake in London-based Savannah Resources, becoming the largest shareholder in the company that is developing a lithium project in northern Portugal.
The 16-million-pound ($20 million) investment by AMG represents a “huge de-risking step” for the project, according to Savannah CEO Emanuel Proenca, who described AMG as the “ideal partner” due to its own lithium business serving Europe’s battery and electric vehicle (EV) sector.
The Barroso lithium project in Portugal has faced strong opposition from local residents and environmentalists, and is seen as a test for the European Union’s ambition to reduce its dependence on countries like China for key raw materials.
Savannah plans to build four open-pit lithium mines in the Barroso region, aiming to extract enough lithium each year for around half a million EV batteries. The company hopes to start production in 2026.
As part of the deal, AMG and Savannah have agreed to study the possibility of building a refinery in Portugal or Spain to turn the extracted spodumene (a mineral containing lithium) into lithium carbonate.
In addition, the agreement gives AMG a seat on Savannah’s board of directors and a five-year offtake of 45,000 metric tons per year of spodumene, which can be extended to 90,000 tons over 10 years.
The investment by AMG, a Dutch mining company with its own lithium business, is seen as a significant step in de-risking the Barroso lithium project and aligning it with Europe’s efforts to secure domestic supply of critical raw materials for the growing EV industry.