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 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.

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 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.