Savannah Resources, based in London, anticipates a rebound in lithium prices by 2027, aligning with its plans to commence commercial production at its mining project in Portugal, according to CEO Emanuel Proenca.
Lithium prices have plummeted over 80% in the past year due to overproduction from China and declining demand for electric vehicles (EVs). The success of Savannah’s project is seen as crucial for Europe’s efforts to reduce reliance on lithium imports from China and other countries essential for the green transition.
Proenca expressed confidence that the market will shift back to a supply deficit around 2027, coinciding with Savannah’s timeline for its Barroso project. He acknowledged that the current low-price environment is lasting longer than expected but projected a 2.6-fold increase in global lithium demand over the next seven years, particularly from 2027 onward.
Despite concerns regarding EV demand, Proenca noted that the market remains robust. Last month, Savannah postponed its production start by a year to 2027, following a change in Portugal’s government. The new centre-right administration took power after the previous Socialist government faced a scandal related to investment project management.
Savannah plans to establish four open-pit mines in the northern Barroso region to produce enough lithium annually for approximately half a million EV batteries. The project has encountered opposition from local residents and environmentalists, but Proenca remains optimistic that these challenges will not hinder progress.
