Savannah Resources (AIM:SAV) has signed an investment contract with the Portuguese Trade & Investment Agency (AICEP) for a non-reimbursable grant of up to €110m to support construction funding for the Barroso Lithium Project.
The grant underlines Barroso's status as a "Strategic Project" under the European Critical Raw Materials Act and supports Savannah, the developer of Europe's largest spodumene lithium deposit, as it advances towards commercial production.
"This represents a sizeable contribution towards the Project's future construction funding and a clear endorsement of Barroso's national and European significance," Chair Rick Anthon said.
Savannah says it will complete the Definitive Feasibility Study in July, advance geotechnical fieldwork enabled by a second temporary land access order to feed detailed engineering, progress FEED and submit its RECAPE environmental compliance dossier in Q4 2026.
The company reports a strong pool of potential lenders and commercial partners attracted by robust project economics and a buoyant lithium market, with spodumene prices currently reported at approximately US$2,800-2,900/t.
At full operation Barroso is planned to produce c.190,000tpa of spodumene concentrate, enough feedstock for roughly 500,000 vehicle battery packs per year and contributing to the European Commission's endogenous lithium production objectives.
Key next milestones are DFS completion in July, the RECAPE submission in Q4 and advancing financing, FEED and commercial arrangements ahead of planned construction in 2027 and target first production in 2028.
