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| AMG Critical Materials |
Western Supply Chain Strategy Reduces China Dependence
AMG Critical Materials plans lithium processing expansion in Brazil and Portugal to establish a fully Western supply chain. Its German hydroxide refinery currently refines spodumene from Brazil, but purity enhancement still occurs in China. Therefore, local processing will reduce shipping costs, improve efficiency, and strengthen regional supply resilience.
Investment Opportunities and Project Potential
Brazil offers legal stability and government incentives for midstream lithium processing. Meanwhile, AMG’s Barroso project in Portugal, with over 39 million tonnes of lithium reserves, will become Europe’s largest lithium mine. AMG aims to integrate upstream supply chains in Brazil to enhance refining efficiency in Germany, leveraging both resource base and industrial capacity.
Operational Outlook and Production Capacity
AMG’s German refinery is set to reach 20,000 t/year lithium hydroxide capacity by year-end. However, timelines for new midstream plants in Brazil or Portugal remain under review. Processing lithium closer to extraction sites will streamline logistics, lower costs, and secure fully Western supply chains.
ScrapInsight Commentary
AMG’s Western lithium strategy mitigates China dependency and strengthens regional supply security. Brazil’s policy support and Portugal’s proximity to European refineries enhance cost efficiency. This expansion signals potential lithium price stabilization and a more integrated global EV battery supply chain.
