Europe’s top lithium producer, Portugal is now moving beyond ceramics to develop battery grade lithium production from its reserves.
Portugal’s Lifthium Energy has secured a $210 million government grant to build a lithium refinery in the country’s north, strengthening Europe’s push to develop a domestic electric vehicle battery supply chain.
The non refundable grant was awarded under the European Union’s Temporary Crisis and Transition Framework, which allows state support to accelerate the green and industrial transition. The refinery will be built in Estarreja, around 50 kilometres south of Porto, and is expected to start operations by 2030.
Portugal is Europe’s largest lithium producer, with reserves of about 60,000 metric tonnes, though output has so far largely served the ceramics industry. The country has only recently moved towards producing battery grade lithium as demand rises from the electric vehicle sector.
Lifthium is 85% owned by Portuguese conglomerate Jose de Mello, with the remaining stake held by its subsidiary Bondalti, Portugal’s largest chemicals producer. Bondalti already operates industrial facilities in Estarreja, providing an existing base for the project.
Chief Executive Officer Duarte Braga said the lithium market and Europe’s industrial environment had become more challenging over the past two years, making public support important. However, he said the company’s focus was now on securing a strategic partner and firming up market and financing conditions before taking a final investment decision.
The refinery is designed to have an annual capacity of 50,000 tonnes of lithium hydroxide, enough to supply batteries for around two million electric vehicles, using proprietary technology aligned with European environmental standards.
Separately, the Portuguese government hopes to launch a long delayed tender for lithium prospecting licences this year, a move seen as critical to building a domestic value chain and reducing reliance on imports, particularly from China.