LISBON, Dec 3 (Reuters) - Portugal's government plans to
launch a long-delayed tender of lithium prospecting licenses in
2025 as it seeks to make the country a top European supplier of
critical metals for the green transition, it said on Tuesday.
The center-right government, which took over in April, said
that the international tender for lithium prospecting will
target six areas in the north and center of the country.
The previous Socialist administration initially planned an
auction in 2018 but concerns about the environmental and social
impact of lithium mining have led to multiple delays to the
auction.
Environment Minister Maria da Graca Carvalho said that the
tender is part of Portugal's plans to meet Europe's goals to
ensure greater security and reduce dependence on imports of
critical materials from countries such as China.
"Our intention is to move forward with the tender in 2025,"
she told journalists, adding that the government wants to speed
up the licensing processes for projects, "but will be demanding
in assessing the environmental impacts."
With some 60,000 tonnes of known reserves, Portugal is
Europe's biggest lithium producer but its miners sell almost
exclusively to the ceramics industry and are only now preparing
to produce the higher-grade lithium for use in electric
vehicles.
Portugal's environmental agency APA has already given its
initial approval to lithium extraction at the Barroso mine,
owned by London-based company Savannah Resources, and at the
Montalegre mine of the local firm Lusorecursos, both in the
north of the country.
The start of exploration in both mines is scheduled for 2027
as they still need licensing authorizations for the concrete
projects.
Lithium miners around the globe are struggling with low
prices for this ore, which have fallen by more than 45%
so far this year, largely due to overproduction from China and a
drop in demand for EVs.
China supplies two-thirds of processed lithium globally and,
according to International Energy Agency data, it has also taken
a huge lead in powering EVs, controlling 85% of global battery
cell production.
Carvalho also said that the government intends to launch
tenders for new copper and gold prospecting licenses next year.
Portugal already has the sixth-largest copper mine in
Europe, operated by Toronto-based Lundin Mining ( LUNMF ). It had
stopped actively exploring for gold more than 30 years ago.