Portugal is supporting the development of domestic lithium processing by providing Lifthium Energy with a 180-million-euro government grant. The company will use the funds to build a battery-grade lithium refinery in the northern part of the country. Funding is being provided under the European Unionʼs temporary crisis and transition framework, which permits state aid to accelerate industrial and ecological transformation.
50,000 tons of lithium hydroxide per year
Once completed, the refinery will have an annual capacity of 50,000 tons of lithium hydroxide which Lifthium claims it sufficient for supplying batteries for approximately two million electric vehicles. The refinery will be built in Estarreja, about 50 kilometers south of Porto. Lifthium is majority-owned by the Portuguese conglomerate José de Mello, while chemical producer Bondalti holds the remaining stake. Bondalti already operates industrial facilities at the site. Lifthium aims to begin production at the refinery in 2030. Meanwhile, the company is considering building another refinery in Spain.
Search for partners to cover financing
Lifthium points out that market conditions and the industrial environment in Europe have recently deteriorated. While government support is important, the company claims it is not enough. Before a final investment decision can be made, partners have to be found, and sales and financing issues must be clarified. Portugal has around 60,000 tons of lithium reserves and is Europeʼs largest producer. By prioritizing the production of battery-grade lithium, Portugal aims to reduce its dependence on imports from countries such as China.
