AMG Critical Materials NV, a key player in the mining and lithium supply industry in the Netherlands, announced on Thursday (January 29) its plans to reduce dependence on China by processing lithium for electric vehicle batteries in Brazil, Portugal, and Germany.
According to Michael Connor, the company’s research director, this move aims to break China’s monopoly in the lithium processing sector. Connor stated that the goal is to establish what he referred to as a “lithium highway” connecting Brazil, Portugal, and Germany, allowing the company to bypass China, which is currently the only option for processing this material.
“We aim to establish processing capabilities in Brazil and Portugal to create a Western supplier for this specialized technology – which currently does not exist,” Connor explained. The operational model of this “lithium highway” is as follows: lithium spodumene concentrate will be produced at the Mibra mine in Brazil, planned for conversion either in Brazil or Portugal to increase lithium content to nearly 100%. Subsequently, the material will be transported to facilities in Bitterfeld-Wolfen, Germany for processing into lithium hydroxide, a key material for battery cathodes.
Although AMG is headquartered in Amsterdam, the core of its lithium business – AMG Lithium GmbH – is based in Germany, which serves as a hub for its refining operations in Europe. While Europe is trying to reduce reliance on lithium from China, the region currently has very limited mining and refining capacities. AMG mainly produces lithium spodumene concentrate at the Mibra mine in Brazil and ships the material to China for conversion.
Despite China’s dominance in the lithium processing sector, Connor believes Europe still holds competitive potential. He emphasized, “Once production takes place in Europe, producing lithium here will be much cheaper than transporting it via China.”
According to analysis from the German business newspaper Handelsblatt, AMG’s plans align closely with the objectives of the EU Critical Raw Materials Act. As the largest shareholder of London-based Savannah Resources, AMG is developing the Barroso mine in northern Portugal. With estimated reserves exceeding 39 million tons, this mine is currently the largest lithium deposit in Europe and will become a crucial support point for the “lithium highway” across the European continent.