EU Fast-Tracks 4 Lithium, Copper Projects in Portugal

(From European Commission website)

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For the first time, the European Commission has adopted a list of strategic projects to boost domestic strategic raw materials capabilities: 47 projects of which four are in Portugal -- three for lithium and one for copper -- all of which will benefit from "simplified licensing provisions", according to the EC (March 25).

The projects in Portugal are listed as Barroso lithium extraction by Savannah Lithium in Boticas, Vila Real District; Lift One processing by Lifthium Energy, S.A. in Estarreja, in Aveiro District; Neves Corvo -- 3rd Silo Lombador, Semblana, integrated extraction and processing of copper by SOMINCOR based in Castro Verde, in the Alentejo region, and the Romano Mine extraction of lithium by Lusorecursos Portugal Lithium S.A., in Montalegre, Vila Real District.

"Europe currently depends on third countries for many of the raw materials it needs most," said Stéphane Séjourné, executive vice-president of the European Commission, responsible for prosperity and industrial strategy. " We must increase our own production, diversify our external supply and create reserves. Today, we identified 47 new strategic projects that will help us secure our own internal supply of raw materials. This is a historic moment for European sovereignty as an industrial power."

The projects are expected to have a capital investment of 22.5 billion euros, according to the European Commission:

"These projects could benefit from coordinated support from the Commission, Member States and financial institutions to become operational. . . . They will also benefit from simplified licensing provisions. . . . In accordance with the Critical Raw Materials Regulation, the licensing procedure will not exceed 27 months for extraction projects and 15 months for other projects. Currently, licensing processes can last between five and 10 years."

Opposition to Lithium Mining

Lithium mining is a hot issue in Portugal. Last year's environmental approval of the Barroso and the Romano lithium mines in Trás-os-Montes, in northern Portugal, has not cooled the seven years of opposition to the mines because of air pollution, noise, water demand and the destruction of a sustainable rural way of life.

Both those projects are underway, with stops and starts.

Just days ago, Benjamin Gonçalves, a landowner, used a trailer to block access to Savannah Lithium's machinery, and the people of Covas do Barroso joined him to show a position of strength, reported SIC Notícias (April 14).

Benjamin Gonçalves claimed that the land was not covered by an administrative easement, while Savannah says that the plots they are working are all covered by the easement.

The Portuguese government authorized establishment of an administrative easement for one year over parcels of land for carrying out survey and other related work to Savannah Lithium's concession contract, Mina do Barroso, for the exploration of quartz, feldspar and lithium in the Municipality of Boticas, Vila Real District, the legal notice read in Diário da República on December 6.

In February, Savannah Lithium said that it would resume work after a precautionary injunction filed by some landowners stopped work for two weeks but was superseded by the State, reported Jornal de Notícias (February 21).

According to Savannah, the State considers "that any postponement of the execution of the administrative act contested in court is more onerous and seriously detrimental to the public interest".

Nelson Gomes, president of Unidos em Defesa de Covas do Barroso (UDCP) told Lusa news agency, according to Jornal de Notícias (February 21): "At this moment, we are not aware of anything. We are calm and serene and waiting for the court to notify us of a decision, but so far we have not received any notification, neither from the court nor from anyone else."

Also, in February, the Vila Real Court ordered the return of a plot of land to community property (baldios), which two farmers sold to Lusorecursos in 2020, and it ordered the removal of the lithium-mining company's machinery and fences, reported Diário de Notícias (February 10).

Lithium Refinery in Estarreja

The Lift One, or Liftium, project, according to its website, plans to produce "high-quality lithium hydroxide for the emerging electrified mobility value chain, specifically for supplying traction battery manufacturers".

The Lifthium project is in the licensing phase for its first plant, according to the website of Bondalti, which is undertaking it, is a subsidiary of the José de Mello Group, a family-based business founded in 1898. Bondalti is the largest Portuguese producer in the industrial chemicals sector, according to the José de Mello website. It has manufacturing plants in Estarreja, Portugal, and Torrelavega, Spain.

By 2030, three lithium refineries would be under development, two of which would be in operation, with a refining capacity of 50,000 tons per year, according to the Bondalti website. More than 2 million cars per year would be powered by electric batteries containing lithium hydroxide supplied by this business area.

Lifthium's estimated output compares to 32,000 tons of lithium hydroxide monohydrate annually from mined spudomene concentrate by the Galp/Northvolt refinery, Aurora Lithium, according to the 41-page Estudo de Impacte Ambiente: Vol. I - Resumo Não Técnico (Study of Environmental Impact: Vol. I - Non-Technical Summary), enough to power more than 700,000 electric vehicles, according to the European Investment Bank (March 11, 2024).

Bondalti says on its website that it will use two technologies, one starting with lithium chloride and the other starting with spodumene.

"From lithium chloride: It focuses on refining lithium chloride by adapting electrolysis technology, taking advantage of the expertise gained by Bondalti in implementing this process in the chlori-alkali sector. . . .

"From spodumene: Approach to a conventional refining technology, based on the transformation of spodumene rock into lithium hydroxide. . . ."

Aurora Lithium's Refining Process

Aurora Lithium's acid-roasting refining process would have involved a series of chemical reactions to render lithium hydroxide monohydrate from hard-rock spodumene.

First, the spodumene concentrate would be heated between 1050 to 1110 degrees C and the result mixed with sulfuric acid at about 250 degrees C to form lithium sulfate, which would be leached with water, according to Proposta de Definição de Âmbito de EIA (PDA) (July 2022).

Aluminosilicates, a by-product, in principle, would be sent to cement companies (such as Secil and Cimpor).

Then, the lithium sulfate solution would be purified by raising the pH in two steps. First, the solution would be neutralized by adding calcium carbonate or calcium hydroxide, which would produce the by-product gypsum which, in principle, would be sent for use in industrial laminate or the gypsum or cement industry. Second, the solution would be purified by adding sodium carbonate and sodium hydroxide to remove impurities such as calcium, magnesium and manganese which, in principle, would be transported to landfill.

Next, there would be an ion exchange to reduce impurities such as calcium.

Then, the purified lithium solution would undergo a conversion process with sodium hydroxide to produce lithium hydroxide. In principle, the by-product sodium sulfate would be sent to the detergent or pulp or paper industry, such as The Navigator Company.

Finally, the crystallized lithium hydroxide would be dried and marketed in the form of lithium hydroxide monohydrate. 

In November 2024, Portuguese energy company Galp decided not to proceed with its 1.1 billion-euro lithium-conversion project in Setúbal after it failed to identify new international partners to replace Northvolt, a Swedish lithium-battery manufacturer, which had declared bankruptcy, according to the multinational energy corporation.

Estarreja OKs Lithium Refinery

The Estarreja Municipality Council is in favor of Lifthium's refinery, reported SAPO (March 25).

"We have no reason to be unfavorable," said President Diamantino Sabina, stressing that the installation will be carried out within the perimeter of Bondalti's other factories. "It is a small factory where the lithium received will already be at an advanced stage of the process, even already purified and, in terms of environmental impact, there are no emissions."

An Environmental Impact Statement, normally required of projects, would be helpful in understanding Bondalti´s refining processes.

President Diamantino Sabina pointed out that the lithium refinery project is different from a proposal to extract lithium from ore, which was rejected by the local authority.

"An investment amounting to a few hundred million euros which will create dozens of highly qualified jobs in the municipality" is why the Municipal Council recognized the project as one of Potential National Interest (PIN) in July 2024, said the president.

Like the EU strategic projects, Potential National Interest projects move quickly through the approval process.

"The CPAI (Commisão Permanente de Apoio Investidor) monitors investment projects to swiftly overcome administrative obstacle and ensure rapid progress by overseeing necessary license and approval," according to AICEP (Portuguese Trade and Investment Agency).

A project can be deemed to have a Potential National Interest if, with exceptions, it meets several requirements, including a global investment of at least 25 million euros and the creation of at least 50 direct jobs, according to AICEP.

Copper Mining in Castro Verde, Alentejo

Founded in 1980 after the discovery of sulphide deposits in 1977, Neves-Corvo is an underground mine with five massive sulphide deposits, which offers base metals, especially copper, tin and zinc, said António Salvador, CEO of SOMINCOR (Sociedade Mineira de Neves-Corvo SA), in a sponsored story in CNN Portugal (March 25, 2024). "Today, we are the sixth largest producer of copper and the largest producer of zinc in Europe."

Operating continuously since 1989, SOMINCOR explores five deposits (Neves, Corvo, Graça, Zambujal and Lombador) and has identified two promising deposits (Semblana and Monte Branco), which have not yet been explored, according to the company.

Lombador and Semblana are the two deposits recognized as strategic by the European Commission.

The Neves-Corvo mine, which employs about 2,000, is set to change hands, reported Diário de Alentejo (December 13, 2024). Lundin Mining, a Swedish-Canadian multinational, is selling the mine to the Swedish company Bolinden for 1.44 billion euros. The deal is expected to be completed by mid-2025.

EC Projects in 12 Other Countries

Besides Portugal, the projects are located in 12 other European Union member states: Belgium; Czechia; Estonia; Finland; France; Italy; Germany; Greece; Poland; Romania; Spain, and Sweden. They cover one or more segments of the raw materials value chain: 25 projects include extraction; 24 transformation; 10 recycling, and two raw materials substitution, according to the European Commission.

The projects cover 14 of the 17 strategic raw materials listed in the Critical Raw Materials Regulation, which came into force on May 23, 2024: lithium (22 projects); nickel (12); cobalt (10); manganese (seven), and graphite (11), all especially significant for the EU battery raw materials chain. Other strategic projects involving magnesium (one project) and tungsten (three) are significant to the defense industry.

The lithium-related projects included those in France (five); Czech Republic (one); Finland (three); Spain (two); Germany (two); Sweden (one); Poland (one), and Italy (one).

The European Commission plans to announce another call for strategic project proposals in the late summer.