Europe's Bold Plan to Break Free From China's Lithium Grip
Dutch miner AMG Critical Materials is pushing ahead with plans to cut Europe's reliance on Chinese lithium processing. The company aims to build a new supply chain linking Brazil, Portugal and Germany. This move comes as Europe seeks to reduce its dependence on China for battery materials while transitioning away from fossil fuels.
AMG currently ships spodumene concentrate from its Brazilian mines to China for conversion. The refined material is then transported to Germany, where the company's Bitterfeld plant turns it into lithium hydroxide. However, delays have pushed back full production at the German siteāoriginally set for 2024āto the end of 2026, with an annual capacity of 20,000 metric tons.
The centrepiece of AMG's strategy is Portugal's Barroso spodumene deposit in the north, the largest lithium reserve in Europe. Estimated at over 39 million tons, the site is being developed by Savannah Resources, in which AMG holds the biggest stake. By processing lithium in Portugal instead of China, the company hopes to create a 'lithium highway' that avoids Chinese refiners entirely.
Europe's push to reduce fossil fuel use has increased demand for lithium, a key battery material. Yet the continent still lacks significant extraction and refining capacity. AMG's plan would mark a major step in securing a local supply chain for electric vehicle and energy storage industries.
If successful, AMG's network of mines and refineries in Brazil, Portugal and Germany could reshape Europe's lithium supply. The Bitterfeld plant's delayed expansion means full production won't start until late 2026. Until then, Europe will continue relying on Chinese processors for most of its battery-grade lithium needs.
