Savannah Resources PLC (LON:SAV) told investors it has entered into an ‘added value services agreement' with EIT InnoEnergy to assist project financing for the Mina do Barroso project, in Portugal.
EIT InnoEnergy is part of a business investment platform (BIP) launched in September to accelerate the development of Europe’s battery industry.
The aim of the BIP is to facilitate some €70bn of investments into EU based battery-related projects that will be required to meet peak European demand by 2023, Savannah noted.
READ: Savannah in talks over lithium offtake deal
Savannah said that EIT InnoEnergy will help the company secure financing to develop its lithium mine, potentially by providing access to public and private sources of finance across equity, debt, and other funding mechanisms, such as grants.
It will also support the company to apply “the most innovative and sustainable state-of-the-art technologies and processes” in the project, introduce customers for Savannah’s lithium, and introduce potential strategic investors.
"Savannah is one of the first lithium raw material development companies in Europe to secure an agreement with EIT InnoEnergy to provide services as part of the Business Investment Platform,” David Archer, Savannah chief executive said in a statement.
“The agreement confirms the significance the European Commission is placing on domestic lithium production as part of the region's new lithium battery value chain, and the key role Savannah is expected to play in this new industry as sole owner of the most significant conventional lithium deposit in Western Europe.
"Savannah has been engaged with the European Commission's agencies and initiatives dedicated to the creation of a sustainable lithium battery value chain in Europe since 2018. This includes our significant involvement in two technical initiatives being run by EIT RawMaterials, as well as the European Battery Alliance,” Archer added.
Diego Pavia, EIT InnoEnergy chief executive commented: “EIT InnoEnergy strives to push Savannah's project in Portugal to completion and further in order to support the development of a sustainable and regional lithium-ion battery supply chain in Europe.
“Our support will bring the project towards the final phase of its development and allow European customers, including battery and automakers, to source lithium chemicals in the EU."