PORTUGAL Trends and Developments Contributed by: Manuel Protásio and Catarina Coimbra, VdA
In addition to the allocation of EUR90 million in pub - lic funding to the Savannah Resources lithium pro - ject under the Recovery and Resilience Plan (PRR), the government recently announced support of up to EUR110 million from the Portuguese Agency for Investment and Foreign Trade (AICEP), representing the State, for the development of the project. This is part of the European Commission’s Temporary Cri - sis and Transition Framework and aims to encourage “major investments in strategic sectors for the transi - tion to carbon neutrality”. Three other projects in the battery value chain also benefited from this measure. This support brings the Portuguese projects to par - ity with similar strategic initiatives recently backed by other governments across Europe and globally. Ultimately, these public grants send a clear message about the importance of the lithium sector for Portu - gal’s economic future, energy security, and role in the wider European green transition. Portugal’s strategic reserves of important minerals (such as lithium and tungsten) not only support its mining industry but are also increasingly important for the defence sector. This growing significance is due to the fact that both Portugal and Europe as a whole face mounting challenges regarding the supply of critical raw materials, which are essential for modern defence technologies.
Recognising these challenges, the EU has highlighted the need to secure the entire value chain of vital miner - als for defence and digital industries, notably through policies such as the EU’s Critical Raw Materials Act. To address these strategic priorities, the European Defence Fund (EDF) was established as a key EU ini - tiative to foster innovation and strengthen integration within the European defence industry. In particular, one of the main goals of the EDF is to accelerate the development and deployment of criti - cal technologies necessary for Europe’s security and defence capabilities. In this context, Portugal’s rich geological resources allow it to play a crucial role in supporting the EU’s ambitions for greater self-suf - ficiency and supply chain resilience, particularly in times of geopolitical uncertainty and dependence on non-European suppliers. While the spotlight remains on lithium – a material crucial to battery production and the green energy transition – interest in other minerals such as tungsten and gold is also on the rise, in particular in the M&A field. Global mining companies and technology firms have increasingly turned their attention to Portuguese mining companies, hoping to secure reliable access to lithium and other critical resources. Notwithstanding, despite growing interest, there have been no landmark takeovers or large-scale public company acquisitions in Portugal’s mining sector to date.
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