Finance
Dutch lithium supplier AMG seeks to bypass China
Published by Global Banking & Finance Review®
Posted on January 29, 2026
3 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 29, 2026
3 min readLast updated: January 29, 2026
AMG Critical Materials plans to process lithium in Brazil, Portugal, and Germany to reduce reliance on China, aiming to establish a Western lithium supply chain.
FRANKFURT, Jan 29 (Reuters) - Dutch miner and lithium supplier AMG Critical Materials plans to reduce dependence on China by processing battery-grade lithium for electric vehicles in Brazil, Portugal and Germany, its head of development told Reuters.
AMG development head Michael Connor said the firm aimed to create what he called a "lithium highway" connecting those three countries to allow the company to bypass China, which he added was currently the only option for processing the material.
"Our goal is to build this processing capacity in both Brazil and Portugal in order to establish a Western provider for this expertise – something that does not exist today," he said.
EUROPE CAN CATCH UP WITH CHINA
Europe is trying to curb reliance on Chinese lithium as it shifts away from fossil fuels, but the region's own extraction and refining capacity is minimal. The world's largest producers are South America, Australia and China.
AMG produces spodumene concentrate – a lithium-bearing mineral – at its Mibra mine in Brazil and ships the material to China for conversion from about 6% lithium content to nearly 100%.
Only then is it sent to AMG's facility in the German town Bitterfeld-Wolfen, where it is processed into lithium hydroxide, a key cathode material for EV batteries and stationary storage.
Connor said that Europe could catch up despite lagging globally. Lithium extraction and processing is, however, complex and takes years to ramp up scale.
"Even if China has gained a significant lead, there's no reason Europe can't catch up," he added. "Once production takes place in Europe, it becomes much cheaper to produce lithium here than to ship it via China."
SLOWER-THAN-EXPECTED RAMP-UP AT GERMAN SITE
AMG's Bitterfeld plant is expected to reach its full 20,000-metric-ton lithium hydroxide capacity by end-2026, two years later than planned, which means missing an earlier goal of 100,000 tons by 2030.
Connor blamed the delay on weaker-than-expected market demand and ongoing checks by prospective customers.
AMG is the largest shareholder in London-based Savannah Resources, which is developing a lithium project in northern Portugal.
The Barroso spodumene deposit holds more than 39 million tons of estimated reserves, the largest in Europe.
(Reporting by Ilona Wissenbach in Frankfurt and Sergio Goncalves in Lisbon; Additional reporting by Rachel More; Editing by Emelia Sithole-Matarise)
Lithium is a chemical element used primarily in rechargeable batteries for electric vehicles and portable electronics. It is essential for energy storage and is a key component in lithium-ion batteries.
Battery-grade lithium refers to lithium that meets specific purity and quality standards required for use in batteries, particularly in electric vehicles and energy storage systems.
Spodumene is a lithium-bearing mineral that is mined for lithium extraction. It is one of the primary sources of lithium used in battery production.
Lithium hydroxide is a chemical compound derived from lithium that is used as a key material in the production of lithium-ion batteries, particularly for electric vehicles.
A lithium processing facility is a plant where lithium ore is refined and processed into lithium compounds, such as lithium hydroxide, which are essential for battery production.
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