Grupo José de Mello Cancels €492 Million Lithium Hydroxide Refinery in Portugal
The cancellation of the €492 million lithium hydroxide refinery project in Estarreja, Portugal, by Grupo José de Mello marks a significant setback for the country's lithium ambitions. The project, aimed at supporting the domestic lithium supply chain, faced challenges in securing long-term contracts with automotive manufacturers, limiting investment opportunities despite prior public funding commitments.
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Grupo José de Mello has abandoned plans for a €492 million lithium hydroxide refinery in Estarreja, Portugal, crucial to the nation's lithium processing ambitions. This decision follows the cancellation of Galp's Aurora project, highlighting a persistent inability to secure long-term offtake contracts, even with public co-financing.
Lifthium Energy, formed in 2023, aimed to produce 28,000 t/y of battery-grade lithium hydroxide, but market conditions weakened, leading to project delays. The Barroso Lithium Project remains Portugal's only advancing lithium asset, with Savannah Resources targeting production by 2028. The failure of both refinery projects raises concerns about the viability of Portugal's lithium supply chain and could shift future spodumene output to non-European markets.
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