Approval of up to €110m Portuguese State Grant

By Finance News On Jan 9, 2026

Savannah Resources Plc, the developer of the Barroso Lithium Project in Portugal, a ‘Strategic Project’ under the European Critical Raw Materials Act and Europe’s largest spodumene lithium deposit (the ‘Project’), is delighted to announce the award of a non-reimbursable grant (the ‘Grant’) of up to approximately €110 million (approximately US$128 million) from the Portuguese State and supported by national funds under the European Commission Temporary Crisis and Transition Framework.

The Grant represents a highly significant financial contribution towards the planned construction of the Project and further demonstrates the support the Project is receiving from the Portuguese State in recognition of its status as an asset of national and European importance in a new strategic industry for the country and the European Union.

Highlights:

Grant details: The up to approximately €110 million[1] (US$128 million) Grant is non-reimbursable[2] and is divided into two parts. 75% (82.25 million Euros, US$96.23 million) is to be committed to the Project’s initial development capital expenditure (‘CAPEX’), and the remaining 25% (27.42 million Euros, US$32.08 million) linked to performance milestones during the operational phase.
Source: The Grant draws on the State’s ‘Investments in Strategic Sectors’ Incentive Scheme, ruled by Government Order no. 306-A/2024/1, of November 27^th (“Regulation”) and falls under the contractual investment regime (‘RCI’), approved by Decree-Law No. 191/2014, of 31 December, representing a large investment project in sectors that are fundamental to the transition towards a carbon-neutral economy and in strategic sectors for the transition to a net-zero emissions economy.
State Entities involved: The award is made by means of an investment agreement with the Portuguese Trade & Investment Agency (‘AICEP’), pursuant to the approval by the Managing Authority of the Thematic Programme for the Innovation and Digital Transition Programme (COMPETE 2030) and the Ministry of Economy and Territorial Cohesion and supported under the European Commission’s Temporary Crisis and Transition Framework.
Conditions precedent: Savannah must comply with certain conditions and Project timelines in order to receive the Grant (see below).
Next steps: Pursuant to the signing of the investment contract by the parties, Savannah will work with AICEP to make the Grant compatible with any future Project Financing and/or other potential funding options to complement the development of the Project. Once executed, Savannah expects that draw down from the first tranche of the funding will take place in parallel with the initial capital development phase of the Project.

Emanuel Proenca, CEO of Savannah said, “The award of this Grant marks another, highly important, milestone for Savannah and the Barroso Lithium Project. The scale of the financial commitment being made by the Portuguese State will provide a significant contribution towards the Project’s CAPEX as we…