Portugal has announced plans to issue an international tender for lithium prospecting licences next year, a process that was initially set for 2018 but faced delays due to environmental and social concerns, reported Reuters.

The tender, targeting six regions in northern and central Portugal, has the potential to position the country as a key European supplier of the metals essential for the green transition.

The government's strategy aligns with Europe's objectives to enhance material security and reduce reliance on imports.

Environment Minister Maria da Graca Carvalho underscored the tender's role in meeting Europe's critical material goals and reducing dependency on imports, particularly from China.

Portugal, with approximately 60,000 tonnes of known lithium reserves, is reported to be the largest producer in Europe. However, its mining sector has traditionally catered to the ceramics industry. Efforts are now being made to upgrade production for electric vehicle (EV) battery-grade lithium.

The environmental agency APA has provisionally approved lithium extraction at the Barroso and Montalegre mines, owned by Savannah Resources and Lusorecursos, respectively.

Both projects, located in the north, are expected to commence exploration in 2027 pending further licensing approvals.

Global lithium miners are currently contending with low ore prices, which have plummeted by more than 45% this year due to oversupply from China and diminishing EV demand. China dominates the processed lithium market and battery cell production, controlling a substantial share of the global capacity.

In addition to lithium, Carvalho revealed plans for new copper and gold prospecting licence tenders next year.

Portugal is home to Europe's sixth-largest copper mine, managed by Lundin Mining, and is revisiting gold exploration after a hiatus of more than three decades.