British News Agency

The project had been classified as “strategic” by the Commission in March, but public backlash and legal challenges over its environmental impact had hindered its progress.

Meanwhile, the British-Portuguese consortium Savannah Resources, behind the lithium project, conducted an assessment of the impact on the region’s water resources.

The company claimed that several modifications made to the initial project—aimed at monitoring and minimizing extraction impacts on surface and groundwater—had “significantly reduced” risks associated with water availability.

Savannah Resources stated that the project has the potential to produce lithium equivalent to around 500,000 electric vehicle battery packs annually, while some estimates suggest production could reach up to one million packs per year.

The Commission’s decision to maintain the strategic status of Mina do Barroso comes as part of the EU’s efforts to increase the production of key raw materials for electric vehicle batteries.

Under the 2024 Critical Raw Materials Act (CRMA), 34 critical and 17 strategic raw materials were designated as “critical” for the green and digital transitions, as well as for the defense and space industries.