AMG Lithium Hydroxide Sales Lift First-Quarter Profit as German Refinery Starts Output

AMG Lithium

AMG Lithium hydroxide sales drove a sharp first-quarter turnaround as AMG Lithium began selling unqualified battery-grade lithium hydroxide from its new German refinery. The subsidiary of AMG Critical Minerals sold $21mn of lithium hydroxide in January-March, helping revenue rise by 89%.

AMG Lithium hydroxide sales marked the first commercial contribution from the German refinery. The plant produced its first commercial batches during the quarter, giving AMG a new downstream revenue stream beyond spodumene concentrate.

AMG Lithium hydroxide sales remain at an early stage because the material has not yet completed customer qualification and approval processes for long-term supply contracts. The “unqualified” label does not mean the product lacks battery-grade characteristics. It means customers have not yet fully approved it for routine contracted supply.

The result shows how lithium producers are trying to move further down the battery materials chain. Spodumene mining remains important, but lithium hydroxide refining offers higher-value exposure if qualification, consistency and customer approvals are achieved.

German Refinery Adds Downstream Lithium Exposure

AMG Lithium’s first-quarter performance shows the strategic value of adding refining capacity in Europe. The German refinery allows the company to convert lithium feedstock into lithium hydroxide closer to European battery and cathode customers.

Battery-grade lithium hydroxide is a key input for nickel-rich cathode chemistries used in electric vehicles and high-performance batteries. European supply remains strategically important as the region seeks to reduce dependence on imported battery chemicals.

The refinery’s first commercial batches therefore carry industrial significance beyond the initial sales value. AMG is building a position in the midstream lithium chain, where qualification, product quality and customer trust determine long-term value.

However, qualification remains the key hurdle. Battery customers require strict consistency, impurity control and process reliability before committing to long-term supply agreements.

The company’s current sales are therefore an early commercial step, not a fully mature refinery ramp-up. The next stage will depend on customer approvals, stable production volumes and the ability to secure higher-value contracts.

Brazil Spodumene Recovery Supports Integrated Model

AMG’s Brazil lithium mine also improved during the quarter. Spodumene production rose by 11% on the year to 13,454t, recovering after ore grade and equipment issues affected output last year.

The mine is back operating in line with AMG’s 2026 target guidance of 130,000 t/yr. Current capacity is around 100,000-110,000 t/yr, according to the company.

Spodumene pricing also strengthened. AMG’s average realised cif China spodumene sales price rose to $916/t in the first quarter, up 43% from $640/t a year earlier.

Higher lithium prices supported the lithium segment’s profitability. AMG Lithium swung to a $15.4mn profit from a $13.9mn loss a year earlier, helped partly by the upward valuation of existing inventory.

But the group’s overall profit still fell by 25% because AMG excludes inventory mark-ups from its final figures. This shows that headline lithium segment improvement partly reflects accounting treatment rather than only operating cash generation.

Shipping delays also capped first-quarter performance. More than 12,000t of spodumene shipments were delayed into April-June, pushing related revenue into the second quarter.

For AMG, the strategic direction is clear. The company is combining Brazilian spodumene production with European lithium hydroxide refining to capture more value across the lithium chain. The model will become stronger if refinery qualification progresses and delayed shipments translate into second-quarter revenue.

The Metalnomist Commentary

AMG Lithium’s first-quarter profit shows how quickly downstream refining can change the earnings profile of a lithium producer. The real test is not the first $21mn of hydroxide sales, but whether AMG can qualify the product, scale output and turn European refining into a durable margin advantage.

AMG Chrome Metal Plant Strengthens US Aerospace Alloy Supply

AMG Critical Materials

AMG chrome metal plant start-up in Pennsylvania will add new US production capacity for a specialty metal used in aerospace, defence and energy applications. AMG Critical Materials plans to open the 6,500 t/yr aluminothermic chrome metal facility in New Castle on 17 June.

The AMG chrome metal plant is strategically important because the US remains heavily dependent on imported unwrought chromium and chromium powders. In 2025, the US imported 11,153t of these products, with the UK supplying 51% and China supplying 34.9%.

The AMG chrome metal plant will sit next to AMG’s existing titanium facility, which produces titanium master alloys and other specialty alloys for aerospace, defence and energy markets. That location creates a stronger domestic cluster for high-performance alloy inputs.

Chrome metal is used in superalloys because it improves corrosion resistance and high-temperature performance. These properties are essential for aircraft engines, defence systems, industrial turbines and other demanding applications.

New Castle Facility Adds Domestic Chrome Capacity

AMG’s new Pennsylvania facility will use aluminothermic production to make chrome metal. The process is important for producing material suitable for high-performance alloy markets.

AMG already has established chrome expertise through AMG Chrome, its UK-based subsidiary. The Rotherham site produces chrome metal, high-purity degassed chrome metals and chrome powders.

The New Castle plant extends that capability into the US market. This gives American aerospace and defence customers another domestic source of chrome metal at a time when supply-chain security has become a higher priority.

The facility’s proximity to AMG’s titanium operation also matters. Titanium master alloys, chrome metal and specialty alloy inputs often serve overlapping customers in aerospace, defence and energy.

That creates potential operational and commercial advantages. AMG can support customers that need multiple alloying materials with stronger domestic logistics, qualification support and supply visibility.

Tariffs and Russian Supply Loss Reshape Chromium Trade

The US chrome market has been reshaped by sanctions, tariffs and trade disruption. Russian supplies became less available after the start of the Russia-Ukraine war, forcing buyers to rely more heavily on other sources.

China became a more important supplier as Russian material disappeared from western trade flows. However, the US imposed a 25% Section 301 tariff on Chinese-origin chrome metal in September 2024.

That tariff increased the cost and complexity of Chinese supply. It also strengthened the case for domestic production capacity, especially for aerospace and defence applications where supply continuity matters.

Europe’s own supply behaviour has also changed. The loss of Russian supplies pushed French producers to keep more material within Europe rather than ship volumes to the US.

This leaves the US exposed to a narrow set of import routes. AMG’s Pennsylvania plant helps reduce that vulnerability by adding domestic chrome metal capacity linked to an established specialty materials producer.

For aerospace superalloy supply chains, this is more than a metal availability issue. Engine and defence programmes require qualified, traceable and reliable materials. Domestic production can reduce risk around tariffs, sanctions, shipping and geopolitical disruption.

The Metalnomist Commentary

AMG’s New Castle plant shows that specialty alloy security is moving beyond titanium and nickel into smaller but critical inputs such as chrome metal. The US cannot build resilient aerospace and defence supply chains without domestic capacity for the alloying elements that make superalloys perform.

AMG to Produce Lithium Concentrate in Portugal by 2027

AMG

Focus Keyphrase: AMG lithium concentrate Portugal

AMG lithium concentrate Portugal production is set to begin in 2027, marking a strategic expansion of the European battery supply chain. Dutch firm AMG Critical Materials signed an exclusive agreement with Grupo Lagoa to develop a spodumene concentrate project in Portugal.

Initial capacity will reach 8,000–9,000 metric tonnes per year, contingent on regulatory approvals. AMG will provide a €10 million loan to fund the pilot plant, ensuring future feedstock for its German lithium hydroxide refinery.

A Strategic Link Between Portugal and Germany

AMG lithium concentrate Portugal operations will directly support the company’s Bitterfeld plant in Germany. This aligns with AMG’s vertical integration strategy — sourcing spodumene locally in Europe and processing it into battery-grade lithium hydroxide.

Grupo Lagoa, which has operated a pegmatite mine since 1984, brings critical local expertise. Meanwhile, AMG leverages its Brazilian experience to scale operations efficiently in a similar geological setting.

Supporting Europe's Battery Supply Chain

The AMG lithium concentrate Portugal initiative reflects the EU’s ambition to reduce battery raw material dependence on non-European sources. By producing and refining spodumene within Europe, AMG strengthens lithium self-sufficiency for the continent’s growing EV sector.

AMG’s expansion builds on its existing Brazilian supply chain and reinforces its commitment to localization. Market-based pricing will determine concentrate supply costs, ensuring economic viability alongside strategic value.

The Metalnomist Commentary

AMG’s entry into Portugal underscores a growing trend of reshoring lithium supply chains in Europe. By pairing resource development with processing capacity, AMG is well-positioned to support EU battery independence initiatives.

AMG Lithium Processing Strategy Targets a Fully Western Supply Chain

AMG Critical Materials (lithium)

AMG lithium processing strategy is moving toward a more fully Western supply chain. The company is exploring new lithium processing investments in both Brazil and Portugal. Its goal is to reduce dependence on China in the spodumene midstream. As a result, AMG lithium processing strategy now centers on regional integration and logistics control.

This matters because AMG already operates one of the few Western lithium refining platforms. The company runs a lithium hydroxide refinery in Germany using spodumene from Brazil. However, the concentrate still needs processing in China before final refining in Europe. Therefore, AMG lithium processing strategy is aimed at removing one of the biggest inefficiencies in its current chain.

The commercial logic is straightforward. Processing closer to extraction sites would cut transport complexity and reduce costs. It would also improve supply visibility for European refining operations. Consequently, the company is trying to build a more resilient and politically aligned lithium system.

Lithium Processing in Brazil Could Deepen Upstream Integration

Lithium processing in Brazil could become the first major pillar of this strategy. AMG is already the second-largest spodumene producer in the country. That gives it a strong upstream position from which to expand into midstream conversion. Therefore, Brazil offers both feedstock security and industrial logic.

Brazil’s policy environment also supports that direction. Authorities have repeatedly encouraged more value-added critical minerals processing inside the country. That policy push aligns with AMG’s stated aim of building an integrated upstream chain in phases. As a result, lithium processing in Brazil could fit both national strategy and company economics.

The country also offers broader structural advantages. Brazil combines legal stability, resource strength, and growing industrial interest in critical minerals. Those conditions make it an attractive location for longer-term investment. Meanwhile, local processing would reduce the need for back-and-forth shipments through China.

Lithium Processing in Portugal Could Strengthen Europe’s Refining Base

Lithium processing in Portugal offers a different but equally strategic advantage. Portugal sits much closer to AMG’s German refinery, which could simplify logistics and shorten transport routes. That would help reduce cost and improve coordination across the European chain. Consequently, lithium processing in Portugal could become a natural extension of AMG’s existing refining base.

The Barroso project adds further importance to that option. AMG is the top shareholder in Savannah Resources, which is developing what is expected to be Europe’s largest lithium mine. Barroso is scheduled to come online in 2028. Therefore, Portugal could eventually provide both local mine supply and closer midstream support for Europe.

AMG has not yet decided the timing, sequencing, or capacity of any new plants. A midstream project could emerge first in Europe or in Brazil. That uncertainty keeps the strategy flexible, but it also shows the company is still in evaluation mode. Meanwhile, its German refinery is expected to complete ramp-up to 20,000 t/yr by the end of this year.

The Metalnomist Commentary

AMG is addressing one of the biggest weaknesses in the Western lithium chain: the missing midstream. Mining and refining alone do not create supply security if China still dominates the upgrade step. If AMG executes well in Brazil or Portugal, it could become one of the more credible builders of a truly Western lithium supply route.

AMG Advances Lithium Hydroxide Refinery in Germany with Integrated Supply from Brazil’s Mibra Mine

AMG Critical Materials

Bitterfeld Plant Set for Ramp-Up as AMG Expands Low-Cost Lithium Feedstock Operations and Secures Offtake with EcoPro

AMG Critical Materials On Track to Launch First German Lithium Hydroxide Refinery

AMG Critical Materials, a Dutch specialty chemicals producer, is making steady progress toward the ramp-up of its lithium hydroxide refinery in Bitterfeld, Germany. The first module, with a capacity of 20,000 metric tonnes per year, is designed to supply high-purity lithium hydroxide to Europe’s fast-growing battery manufacturing sector.

The German plant will process technical-grade lithium salts sourced from AMG's integrated Mibra Mine in Brazil, which produces lithium concentrate and co-produces tantalum, providing a critical cost advantage in spodumene processing.

Brazil's Mibra Expansion Strengthens AMG’s Vertically Integrated Lithium Strategy

In 2024, AMG completed the expansion of its Brazilian lithium operations, increasing production capacity from 90,000 tonnes to 130,000 tonnes per year. Despite selling 88,966 dry metric tonnes of concentrate—6% less than in 2023—the company achieved an average sales price of $854/dmt cif China.

Crucially, the Mibra Mine maintains a low production cost of $458/dmt, supported by tantalum byproduct credits. This low-cost feedstock enhances AMG’s competitive position as the Bitterfeld plant begins to scale production.

Offtake Agreement Secured with EcoPro as European Battery Market Grows

To ensure downstream placement, AMG signed a binding multiyear supply agreement in 2022 with South Korea’s EcoPro, one of the world's largest cathode material producers. Under this deal, AMG will supply battery-grade lithium hydroxide from its Bitterfeld refinery, reinforcing its role in the European EV battery supply chain.

The project aligns with EU ambitions to localize and secure critical raw material supplies amid growing demand for sustainable energy technologies. AMG’s fully integrated mine-to-refinery model positions it as a key player in Europe’s lithium ecosystem.

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.

AMG Lithium First Quarter Results Reflect Weak Prices, But Strategic Progress Continues

AMG Lithium

Lithium Concentrate Sales Drop Amid Pricing Pressure

AMG Lithium's first quarter results revealed a 22% drop in lithium concentrate sales, driven by end-2024 shipments and production testing. The Brazilian spodumene operation sold 12,167t in Q1 2025, compared to higher volumes a year earlier. The lithium unit also faced falling market prices, pushing Q1 revenue down 23% to $32mn.

Battery-Grade Production Begins in Germany

Despite revenue pressure, AMG Lithium achieved its first battery-grade lithium hydroxide output in Bitterfeld, Germany. While the firm has not yet disclosed a firm commercialization date, it confirmed that the product will soon enter the market. Meanwhile, AMG announced that its Portugal project is expected to begin lithium concentrate production by H1 2027 — marking a significant expansion step.

Parent Company Shows Strong Overall Growth

AMG Critical Materials, the parent company, posted Q1 revenue of $388mn, up 8% year-over-year. Gross profit rose by 56% to $82.6mn, fueled by stronger performance in vanadium, tantalum, and ferroalloy segments. Despite the AMG Lithium first quarter results showing weakness, the group’s broader material portfolio provided a strong financial cushion.

The Metalnomist Commentary

AMG Lithium’s Q1 slump reflects broader volatility in global lithium markets. However, the company’s move into battery-grade hydroxide and its planned Portugal expansion demonstrate long-term strategic alignment with Europe’s energy transition goals.

Germany’s RW Silicium Suspends Silicon Metal Production Amid Soaring Energy Costs

RW Silicium

High electricity prices and weak demand force temporary shutdown at AMG subsidiary’s Pocking facility.

RW Silicium, a leading silicon metal producer and subsidiary of AMG, has suspended production at two of its four electric arc furnaces in Pocking, Germany. The company cited unsustainable electricity prices of €90–100/MWh as the key reason behind the decision. Both units had been operational since March 2024 but were idled in April due to cost pressures.

The company has initiated maintenance activities as part of a temporary shutdown, with plans to restart one furnace during the second quarter of 2025. RW Silicium’s facility has a total annual capacity of 32,000 tonnes, according to data from the US Geological Survey.

Europe’s Silicon Metal Sector Struggles with Dual Pressures

High energy costs are not the only challenge. Weak demand from the European automotive sector has pushed silicon metal prices to multi-year lows, further justifying production cuts. This dual pressure of low market prices and high input costs is threatening the viability of domestic producers.

To mitigate this, the European Commission has launched a safeguard investigation targeting imports of silicon metal and ferro-alloys from non-EU countries. This move aims to protect the regional industry from further erosion caused by cheap imports and external shocks.

Strategic Pause or Long-Term Challenge?

While RW Silicium plans a phased return to production, the situation underscores broader concerns within Europe’s energy-intensive metallurgical sectors. Unless power prices stabilize or structural reforms are enacted, more producers could follow suit.

The future of European silicon metal production may hinge on policy interventions, trade protections, and a rebound in industrial demand, particularly from automotive and photovoltaic sectors.

Rio Tinto 2026 production guidance signals steady aluminium and higher alumina

Rio Tinto

Rio Tinto 2026 production guidance sets 2026 targets for bauxite, alumina, and aluminium. Rio Tinto 2026 production guidance keeps aluminium steady while it lifts alumina output. The company targets 58–61mn t of bauxite, 7.6–8mn t of alumina, and 3.25–3.45mn t of aluminium. However, tailings limits and power contracts shape the real supply outlook.

Bauxite and alumina tighten around operational constraints

Bauxite volumes will dip slightly as Rio Tinto eases Weipa output after a strong 2025. The company ran the Amrun mine above capacity for most of 2025. As a result, the complex lifted production by 8pc in January–September. Meanwhile, Rio Tinto plans a 2027 expansion at Norman Creek.

Alumina guidance rises, but Rio Tinto will curb output at Yarwun refinery in late 2026. The company expects 7.6–8mn t of alumina in 2026. However, it will cut the 3mn t/yr refinery by 1.2mn t/yr from October 2026. The site supplied about 39pc of Rio Tinto’s alumina in July–September.

Aluminium stays steady as capex and power risks grow

Aluminium output stays flat, yet the company invests heavily in low-carbon capacity. Rio Tinto plans 3.25–3.45mn t of aluminium in 2026. Meanwhile, it will expand the AP60 smelter in Canada to 220,000 t/yr. The $1.1bn project will add 96 pots in early 2026.

Australian power risk now threatens stable smelting volumes. Rio Tinto must secure a new power deal with Hydro Tasmania for Bell Bay smelter by end-2026. However, high energy costs could also force a 2028 closure decision at Tomago smelter in New South Wales. Meanwhile, Rio Tinto pursues growth through an India low-carbon smelter plan with AMG Metal and Mining. Therefore, Rio Tinto 2026 production guidance will face execution risk beyond the headline ranges.

The Metalnomist Commentary

Rio Tinto’s stable aluminium guidance hides rising constraints across refining and smelting. However, the AP60 expansion signals confidence in premium, low-carbon metal demand. Therefore, investors should watch tailings solutions and power negotiations more than volume targets.

Rio Tinto Signs Low-Carbon Aluminium Project Deal in India

Rio Tinto, Low-Carbon Aluminium

Focus Keyphrase: Low-Carbon Aluminium Project

Rio Tinto signed an agreement to launch a low-carbon aluminium project in India, targeting rapid growth in sustainable metal production. The deal with India's AMG Metal & Mining focuses on a renewable-powered aluminium smelter and alumina refinery, aiming to reshape the region’s green aluminum supply chain.

The proposed project includes a 1mn t/yr aluminium smelter and a 2mn t/yr alumina refinery, with a 500,000 t/yr smelter under study for phase one. It will use renewable energy with pumped hydro storage, aligning with Rio Tinto’s strategy to expand low-carbon aluminium operations in emerging markets.

India as a Strategic Base for Clean Aluminium

Rio Tinto’s entry into India signals a strategic shift toward responsible and cost-effective aluminium production in Asia. The partnership supports India's aluminium needs and European export opportunities, backed by Rio Tinto’s Australian bauxite reserves.

Jerome Pecresse, CEO of Rio Tinto Aluminium, emphasized the company’s commitment to clean energy and long-term aluminium supply chains. The firm plans to leverage India's industrial expansion while maintaining its ESG commitments.

Renewable Energy Integration Gains Traction

This low-carbon aluminium project reflects a growing trend in decarbonizing metals production, especially in energy-intensive sectors. By incorporating pumped hydro storage, the project aims to deliver stable, sustainable electricity to power smelting operations, cutting carbon emissions significantly.

As global demand for green aluminium increases, Rio Tinto positions itself to supply responsibly sourced metal across multiple continents.

The Metalnomist Commentary

Rio Tinto’s move into India’s aluminium sector reflects a convergence of ESG priorities and emerging market demand. This project could become a benchmark for future low-carbon metals initiatives in Asia and beyond.