London-based Savannah Resources has suspended exploration work at certain sites of its lithium project in northern Portugal following a legal injunction filed by local landowners. The injunction, issued by the Mirandela Administrative Court, challenges the Portuguese government’s decision to grant the company access to privately owned land for prospecting activities.
The ruling only affects areas not owned by Savannah, but it has forced the company to temporarily halt operations that had been ongoing for the past two months. Savannah acknowledged the legal challenge, stating that it had anticipated the move and is handling the process with “serenity.”
The Barroso lithium deposit, which Savannah is developing, is considered one of Europe’s most significant sources of spodumene, a key mineral for battery production. Recent prospecting results indicate that the deposit may exceed the previously estimated 28 million metric tons of high-grade lithium. The company aims to begin commercial production in 2027.
To develop its four-mine project, Savannah requires approximately 840 hectares of land. Currently, the company controls only a fraction of this area, with private owners holding 24% and communal lands making up 75%. In December, the Portuguese government granted Savannah temporary access to over 520 hectares of non-owned land for a one-year period.
The project has faced opposition from local communities and environmental groups, raising broader concerns about the European Union’s strategy to secure domestic sources of critical raw materials and reduce reliance on China. Despite the setback, Savannah remains confident in resuming work soon, stating that it has dealt with similar legal challenges in the past.
