Portugal’s Lifthium Energy has secured a €180 million government grant to develop a lithium refining facility in northern Portugal, targeting the rapidly expanding electric vehicle battery sector. The funding, provided under the European Union’s Temporary Crisis and Transition Framework, is non-refundable and aims to accelerate the green and industrial transition by supporting domestic battery-grade lithium production.
Portugal holds roughly 60,000 metric tons of lithium reserves—Europe’s largest—historically serving the ceramics market. Lifthium, in which Portuguese conglomerate José de Mello owns 85% and its chemicals subsidiary Bondalti holds the remainder, plans to build the refinery in Estarreja, about 50 km south of Porto. Bondalti already operates chemical sites in the region.
Lifthium is targeting operational start-up by 2030. The plant is designed for an annual refining capacity of 50,000 metric tons of lithium hydroxide—sufficient to support batteries for approximately two million electric vehicles. The company intends to employ proprietary processing technology engineered to meet Europe’s strict environmental and industrial standards.
Chief Executive Duarte Braga emphasized that the project is moving forward with “rigour and prudence,” noting that market conditions and Europe’s industrial landscape have become more challenging over the past two years. While the public grant represents a crucial endorsement, Lifthium is now focused on securing a strategic partner and firming up market and financing arrangements before making a final investment decision.
In addition to the Estarreja refinery, Lifthium is evaluating a potential second facility in Spain. The Portuguese government is also preparing to launch a long-delayed tender for lithium exploration licences this year. Officials view the licence tender as a key step in establishing a full domestic lithium value chain and reducing Europe’s dependence on imported lithium, including supplies from China.
Source: Reuters
