The group invested £16 million in Savannah, and agreed to purchase up to 90,000 tons annually for five years, a contract designed to help Proenca move into production.
Savannah's lithium has been recognised as extremely high quality and the group expects to produce around 200,000 tons a year, leaving plenty to spare for other refiners and manufacturers.
Added endorsement came just before Christmas when Euler Hermes, an export credit giant backed by the German government, said Savannah should be eligible for a loan guarantee of up to $270 million (£218 million).
Portugal-based Savannah Resources has the largest and highest-quality deposit of lithium in Europe and expects to be in production by 2027, when demand for the mineral is forecast to increase.
Midas verdict: Europe is keen to build a home-grown lithium market and Savannah Resources has a key role to play.
