Portuguese Prime Minister Antonio Costa Resigns Amid Corruption Investigation Linked to Lithium Mining and Green Energy Projects

Costa's resignation unsettles green energy and lithium mining projects as well as political stability, with the national PSI 20 share index plunging and the likelihood of fresh elections. Government in caretaker mode raises concerns about key investments and projects being derailed.

Portuguese Prime Minister Antonio Costa resigned amid a corruption investigation into alleged irregularities in handling lithium mining and hydrogen projects in the country.
Costa's decision to step down has sparked a political crisis, with the national PSI 20 share index falling and the possibility of fresh elections being called.
The corruption probe has also raised concerns about the derailment of key investments and projects, as the government is now in caretaker mode.
The investigation includes looking into concessions awarded for lithium mines and hydrogen production, with five people, including Costa's chief of staff and a business consultant, reportedly detained.
Green energy investments requiring European Union funds and the privatisation of airline TAP are among the projects at risk due to Costa's resignation.
With Portugal being the largest producer of lithium in Europe, the investigation into alleged illegalities in its mining projects could potentially impact the green energy sector in the continent.