Portugal has announced an international tender for lithium prospecting licenses to be issued next year. The process was originally scheduled for 2018 but was delayed due to environmental and social concerns. The tender will cover six regions in northern and central Portugal.
The government said the initiative is linked to efforts to strengthen material security and reduce reliance on imports, particularly from China. Environment Minister Maria da Graca Carvalho said the tender is intended to support Europe’s critical material needs and lower dependence on foreign sources. The announcement places lithium prospecting within a broader European policy context.
Lithium reserves and shift toward battery-grade production
Portugal is estimated to have about 60,000 tonnes of known lithium reserves, which would make it the largest lithium producer in Europe. Historically, the country’s mining sector has focused on supplying the ceramics industry. Current work is aimed at moving toward production of battery-grade lithium for electric vehicles (EVs).
In parallel with the licensing process, Portugal’s environmental agency, APA, has provisionally approved lithium extraction at two sites. The approvals cover the Barroso mine and the Montalegre mine. Both projects are located in northern Portugal.
Projects provisionally approved by APA
The Barroso mine is owned by Savannah Resources, while the Montalegre mine is owned by Lusorecursos. Exploration at both locations is planned to start in 2027, subject to additional licensing approvals. The timing depends on further regulatory steps beyond the provisional APA clearance.
Outside Portugal, global lithium producers are facing a market downturn. Lithium prices have fallen by more than 45% this year, attributed to oversupply from China and slower EV demand. China controls much of the processed lithium market and a substantial portion of global battery cell production capacity.
Additional prospecting licenses for copper and gold
Alongside lithium, Minister Carvalho said new prospecting licenses for copper and gold will be issued in 2024. Portugal also has an active copper operation: Lundin Mining runs Europe’s sixth-largest copper mine in the country. The minister also pointed to renewed gold exploration following a pause of more than 30 years.
The announced licensing plans therefore extend beyond lithium into other critical metals. Copper and gold prospecting is set for 2024, while lithium exploration at the provisionally approved sites is scheduled for 2027 pending further approvals. Together, the steps outline a sequence of prospecting activities across multiple minerals.