BRUSSELS - The European Commission has recognized the Barroso Lithium Project in Portugal as a Strategic Project under the Critical Raw Materials Act (CRMA), Savannah Resources (LON:SAVS) PLC announced today. This designation is part of the EU’s effort to secure a supply of strategic raw materials necessary for the green and digital transitions, as well as for the aerospace and defense sectors.
The Barroso Lithium Project, owned by Savannah Resources and located in northern Portugal, is Europe’s largest known spodumene lithium deposit. The project’s classification as ’Strategic’ will enable it to receive coordinated support from the European Commission, member states, and financial institutions. This includes access to finance and help in connecting with relevant off-takers, as well as streamlined permitting provisions. The European Commission has stipulated that the permit-granting process for extraction projects will not exceed 27 months.
Emanuel Proença, CEO of Savannah Resources, stated that the classification acknowledges the quality of work undertaken by the company and its commitment to sustainable development and community engagement. Savannah employs around 30 local staff and anticipates hiring more as the project progresses.
The European Commission’s Executive Vice-President for Prosperity and Industrial Strategy, Stéphane Séjourné, highlighted the importance of securing Europe’s own supply of raw materials, which is currently dependent on third countries. The Barroso Lithium Project is among the first 47 projects identified to help achieve this goal.
The projects recognized cover various segments of the value chain, including extraction, processing, recycling, and substitution of raw materials. They pertain to 14 of the 17 strategic raw materials identified under the CRMA, such as Lithium, Nickel, and Cobalt.
Savannah Resources aims to complete its RECAPE submission and the Definitive Feasibility Study by the end of 2025, with the goal of initiating production in 2027. The project is expected to contribute significantly to the EU’s target of sourcing a minimum of 10% of its lithium from within Europe by 2030.
This development represents a strategic move for the EU to reduce its reliance on external raw material sources and bolster its industrial sovereignty. The information is based on a press release statement from Savannah Resources PLC.
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