Hundreds converge on Barroso as Portugal’s lithium strategy “begins to unravel” – Portugal Resident

Up to 800 people from Portugal and abroad are expected in Covas do Barroso this weekend for five days of protest, debate and cultural events opposing plans for one of the country’s largest lithium mines.

The sixth Camp in Defence of Barroso opens on Thursday as campaigners argue that the economic justification repeatedly advanced for lithium extraction in Portugal is steadily collapsing.

Savannah Resources plans to begin construction of its open-pit Barroso lithium mine in 2027. But two major projects intended to process Portuguese lithium and create a domestic industrial supply chain have now been abandoned.

Most recently, the José de Mello Group decided not to proceed with a €492 million Lifthium refinery in Estarreja after failing to secure the long-term customer contracts needed to support the investment, Expresso reported.

The withdrawal came only months after the European Commission designated Lifthium a Strategic Project under the Critical Raw Materials Act, intended to strengthen Europe’s industrial resilience and reduce its reliance on foreign suppliers.

The project had qualified for €180 million in public support, although that money was never used.

“What has long been promised is that the value chain would remain in Portugal — that we would have refineries, battery factories and everything else,” Nélson Gomes, president of the Unidos em Defesa de Covas do Barroso association, told Lusa.

“But what we are seeing are projects such as the Estarreja lithium refinery being abandoned because they realised it was not profitable and made no sense.”

The Estarreja decision followed GALP’s abandonment in November 2024 of its proposed Aurora lithium conversion plant in Setúbal. GALP withdrew after Swedish battery manufacturer Northvolt pulled out and no replacement international partner could be found.

Aurora had been promoted as an important step towards creating an integrated European battery industry.

With both conversion projects shelved, campaigners fear Portugal could be left to bear the environmental and social costs of lithium extraction while much of the processing, technological development, skilled employment and resulting economic value moves elsewhere.

“The withdrawal of one of Portugal’s flagship lithium projects demonstrates that Europe’s critical raw materials challenge cannot be solved through political declarations alone,” said MiningWatch Portugal founder Nik Völker following the Estarreja decision.

“Strategic designation cannot substitute commercial viability. If downstream projects disappear, policymakers must honestly reassess the economic justification repeatedly presented to local communities asked to host new mining operations.”

Between 700 – 800 people are expected to attend the camp, which runs until Monday. Registration was closed early because of the level of interest.

“The aim is to raise awareness of our struggle and bring people here to Barroso — people from everywhere who are willing to support and help us,” Gomes said.

“This shows that we are doing a good job and that we are right. These communities and these areas cannot continue to be sacrificed when we can see that, ultimately, the country stands to gain nothing from this mining project.”

The programme includes discussions about mining conflicts in Barroso and other countries, the energy transition and the future of mineral extraction. Workshops, concerts, performances, film screenings, field trips and nature walks are also planned.

On Saturday afternoon, participants will march through Covas do Barroso, in the municipality of Boticas, in the annual public demonstration against the mine.

“We are protesting where we live, and this is where the protest should take place because this is where it is happening,” Gomes said.

“This is where we want to deliver our message and where we want people to come and see the situation for themselves, so that they can truly understand what is going on.”

Savannah Resources received a conditional favourable Environmental Impact Statement for the Barroso mine in 2023.

The company announced in July that its Definitive Feasibility Study envisaged an initial mine life of 14 years, based on a probable reserve of 20 million tonnes of ore. Savannah expects to produce approximately 2.56 million tonnes of spodumene concentrate during that period — which it says would contain enough lithium for more than seven million electric-vehicle batteries.

The project remains strongly opposed by residents, their local council and environmental organisations.

Portugal’s government and the European Commission have presented domestic lithium extraction as critical to the energy transition, industrial competitiveness and reducing Europe’s dependence on outside suppliers.

But the disappearance of two flagship processing projects has left a central question unanswered: if Portugal’s promised lithium value chain is not materialising, whose industry will ultimately benefit from the mines?

source material: LUSA