"The geological resources belong to all the Portuguese, therefore the royalties should go to the central administration. But we recognise that local populations are directly affected," said Deputy Secretary of State for Energy, João Galamba.

He also added that the same law will define that "those in lithium should contribute to a fund" that will be used for recycling.

João Galamba was speaking at the Committee on the Environment, Energy and Spatial Planning, in Parliament, at a hearing requested by several parliamentary groups.

The lithium exploration concession contract in the municipality of Montalegre, (NE Portugal) signed between the Government and Lusorecursos Portugal Lithium, has been shrouded in controversy and one of the reasons given is the fact that the company was formed three days before the contract was signed.