There is a metal that doesn't shine, doesn't weigh, and is difficult to see with the naked eye. But without it, no electric car can run. It's lithium, and it has now become the most valuable strategic commodity of our time, more important to many governments than oil.
The year 2026 has brought the great battle for control of the supply chain of critical minerals back to the fore. Europe, which for years depended almost exclusively on China for its supply of lithium and other battery materials, is now fighting back with laws, investments and efforts.
The EU's largest deposit is in Portugal.
In the north of the Iberian Peninsula, near the town of Boticas in the province of Viana do Castelo, lies what is now officially recognized as the largest deposit of spodumene – the crystalline source of lithium – in the entire European Union. The project is called the Barroso Lithium Project and belongs to Savannah Resources, a British-Portuguese company that has been making the same bet for years.
In September 2025, Savannah announced a 40% increase in proven reserves to 39 million tonnes of ore, with an average content of 1.05% lithium oxide. This corresponds to approximately 1.02 million tonnes of lithium carbonate equivalent. If we add to this the still undeveloped areas of the mine, which remain “open” in both length and depth, the potential resources could exceed 100 million tonnes – enough to produce approximately 47 million electric car batteries.
On an annual basis and at full operation, the mine will process 1.5 million tons of ore, supplying the industry with lithium for at least 500,000 to 1,000,000 vehicle battery packs per year — with an operating horizon of at least 14 years.
The EU officially bets on Barroso.
In March 2025, the European Commission included the Barroso Lithium Project in the first list of “Strategic Projects” announced under the Critical Raw Materials Act — legislation that sets a target of 10% of critical raw materials coming from domestic European production by 2030. It is not a symbolic move: this strategic classification opens up access to financing, simplifies licensing, and brings investors to the table.
In January 2026, the Portuguese government approved a €110 million grant for the project, the largest direct government investment in lithium mining in Europe to date. Of this, €82 million is for initial capital expenditure and €28 million is related to operational milestones. At the same time, the German government — through export credit agency Euler Hermes — has expressed formal interest in a loan guarantee of up to $270 million. Germany, with BMW, Mercedes, Audi and Volkswagen already in the midst of an intensive electric transition, has every reason to want to have the first say in Portuguese lithium.
The final investment decision is expected within 2026, with commercial production targeted for 2027.
The other side: water, nature and local reactions.
Nothing is completely indisputable in this process. Residents of Botika and the surrounding rural area have expressed early concerns about the impact of mining on groundwater and biodiversity. In December 2025, the European Commission reaffirmed the “strategic” nature of the project after Savannah completed an extensive water resources assessment, demonstrating that risks to surface and groundwater were “significantly reduced” through technical modifications and monitoring measures. The issue remains open, but legally the company has secured the permits it needs to proceed.
It is worth noting that Savannah has committed to powering the entire processing plant exclusively from renewable energy sources, an achievable goal, considering that Portugal already receives over 80% of its electricity from renewable energy sources.
Global outlook: deficit looming
Barroso’s value becomes even clearer when you look at the bigger picture. According to the International Energy Agency, lithium demand is expected to grow by almost 30% in 2024 alone, with the energy transition accounting for 85% of the total growth in demand for battery metals. The forecast for 2040 predicts five times the demand today – and while markets appear well-supplied in the short term, analysts expect demand to outstrip supply by the late 2030s.
At the same time, China still controls over 60% of global lithium processing – a share that is expected to remain until 2035 despite efforts to diversify. This concentration of power in a single country is what makes Barroso so valuable to Brussels.
What about Greece? Its role in the critical minerals map
In this context, Greece is not just an observer. It accounts for 85% of the EU’s total bauxite production, ranks first in Europe in the production of perlite and bentonite, and now also produces gallium – a critical element for semiconductors and solar panels. The country’s public mining departments have already identified cobalt, magnesium, graphite, platinum, tungsten and rare earth metals – the very materials the EU currently imports 97-100% of from China, Congo and Turkey.
Global investor interest in Greece’s subsoil is growing, as the country has been placed on the European Commission’s “radar” for critical raw materials alongside Sweden, Finland, Norway and Greenland. In contrast to the “fake” lithium deposits that have circulated on the Greek internet in the past as anecdotal rumors, the official picture of Greece’s mineral wealth is clearer: no significant lithium deposits have been confirmed, but the presence of the rarer – and equally valuable – rare metals is what puts Greece on the map of Europe’s growing independence in raw materials.
In a world where electrification is no longer tomorrow, but today, the question is not whether there is demand for these materials. But who will control their supply.
