LISBON – Dutch miner AMG has acquired a 15.77% stake in London-based Savannah Resources, becoming the largest shareholder in the company developing a lithium project in northern Portugal, both companies announced last week.
Savannah CEO Emanuel Proenca described the £16 million investment as a “huge de-risking step,” calling AMG the “ideal partner” due to its extensive experience in the lithium business, which serves Europe’s battery and electric vehicle (EV) sector.
The lithium project in the Barroso region, which has faced significant opposition from local residents and environmentalists, is viewed as a critical test for the European Union’s efforts to reduce dependence on countries like China for essential raw materials.
Savannah plans to construct four open-pit lithium mines in the Barroso region, aiming to produce enough lithium annually to power around half a million EV batteries. The company hopes to begin production by 2026.
In addition, AMG and Savannah have agreed to explore the feasibility of building a refinery in Portugal or Spain to convert spodumene into lithium carbonate.
The deal grants AMG a seat on Savannah’s board of directors and a five-year offtake agreement for 45,000 tonnes per year of spodumene, extendable to 90,000 tonnes over 10 years. Spodumene is a mineral that contains lithium, essential for battery production.
