Portuguese lithium developer Lifthium Energy has secured €180 million in state funding to support the construction of a lithium refinery in northern Portugal, as the country and the European Union seek to strengthen domestic supply chains for battery materials.
The grant was awarded under the European Union’s Temporary Crisis and Transition Framework, a time-limited state aid programme designed to accelerate the energy transition and industrial decarbonisation, the company said. The refinery will be built in Estarreja, around 50 kilometres south of Porto, and is expected to begin operations by 2030.
Portugal is Europe’s largest producer of lithium, although output has historically been directed mainly toward the ceramics industry rather than battery applications, according to Reuters. Only in recent years has the country shifted its focus toward battery-grade lithium as demand from the electric vehicle sector accelerates. Lifthium is among the first companies aiming to establish large-scale refining capacity within the country.
Under current plans, the Estarreja facility will have an annual refining capacity of 50,000 tonnes of lithium hydroxide, a key material used in high-energy-density lithium-ion batteries. Lifthium said the plant will rely on proprietary refining technology designed to comply with increasingly strict environmental and regulatory standards in Europe.
The project, however, is not yet fully financed. Lifthium said the next phase will centre on securing a strategic partner and finalising commercial and financing conditions before making a final investment decision. The company is also evaluating the possibility of developing a second lithium refinery in Spain.
Ownership disclosures cited by Reuters show that Lifthium is majority controlled by Portuguese conglomerate José de Mello, which directly holds 85% of the company, with a further 25% owned by its chemical subsidiary Bondalti. Bondalti already operates industrial facilities in Estarreja, providing an established chemical cluster for the planned refinery.
“We are moving forward with rigour and prudence. This incentive is very important for the project, but the focus remains on creating the necessary conditions to move on to the next phase,” said Duarte Braga, chief executive of Lifthium Energy. “The goal is to establish commercial, strategic and financial partnerships that support a solid and sustainable long-term decision.”
The investment comes as European policymakers seek to reduce reliance on imported battery materials and build a regional value chain for electric vehicles, with lithium refining seen as a critical bottleneck in the transition to electrified transport.