Portugal has announced plans to issue an international tender for lithium prospecting licenses next year, a process originally scheduled for 2018 but delayed due to environmental and social concerns. The tender, which will focus on six regions in northern and central Portugal, could position the country as a key European supplier of the critical metals necessary for the green transition.
The move is part of Portugal’s broader strategy to align with Europe’s goals of enhancing material security and reducing reliance on imports, particularly from China. Environment Minister Maria da Graca Carvalho highlighted the importance of the tender in helping Europe meet its critical material needs and decrease dependence on foreign sources.
Portugal is estimated to have around 60,000 tonnes of known lithium reserves, making it the largest lithium producer in Europe. Historically, the country’s mining sector has focused on serving the ceramics industry, but efforts are now underway to transition towards producing battery-grade lithium for electric vehicles (EVs).
The country’s environmental agency, APA, has provisionally approved lithium extraction at the Barroso and Montalegre mines, owned by Savannah Resources and Lusorecursos, respectively. Both projects, located in northern Portugal, are slated to begin exploration in 2027, pending further licensing approvals.
Global lithium miners are currently grappling with a slump in prices, which have fallen by over 45% this year due to oversupply from China and a slowdown in EV demand. China controls the processed lithium market and a substantial portion of global battery cell production capacity. In addition to lithium, Minister Carvalho also announced plans to issue new prospecting licenses for copper and gold in 2024.
Portugal, home to Europe’s sixth-largest copper mine, operated by Lundin Mining, is also revisiting gold exploration after a hiatus of more than 30 years.
