AMG to Establish US Chrome Metal Production Plant

AMG Critical Materials

AMG Chrome Expansion Targets Strategic Metal Supply Chain

Dutch firm AMG Critical Materials plans to build a chrome metal production facility in Pennsylvania by early 2026. The plant will produce 6,500 t/yr of aluminothermic chrome metal and aims to bolster US domestic capacity amid supply chain pressures.

Strengthening Domestic Chrome Supply

The $15 million investment will be located in New Castle, Pennsylvania, next to AMG Titanium’s existing plant. This strategic move builds on AMG’s extensive experience in chrome production through its UK-based subsidiary, AMG Chrome. The company’s Rotherham site currently produces high-purity degassed chrome and powders.

Meanwhile, AMG Titanium has supplied titanium master alloys and specialty metals to the defense, energy, and aerospace sectors for decades. The proximity of the new chrome plant is expected to support vertical integration and operational efficiency.

Geopolitical and Strategic Context

Chrome metal is vital for high-temperature applications, especially in defense and aerospace. The US government lists it as a critical material. The new US facility comes as Washington grapples with a limited domestic supply. Unwrought chromium and powders were exempted from recent tariffs due to the country’s lack of local production.

However, rising geopolitical tensions and the 25% tariff on Chinese chrome imposed in September 2024 have increased costs for US buyers. Following sanctions on Russian supplies, the US has become heavily dependent on China, heightening the urgency for local alternatives.

The Metalnomist Commentary

AMG’s investment highlights the growing Western push to onshore critical metal production amid supply chain risks. As trade tensions with China escalate, establishing domestic chrome output could offer long-term stability for aerospace and defense sectors.