Europe's 'Lithium Highway' Aims to Break China's Battery Supply Dominance

A bold move to reshape Europe's energy future. Can a Brazil-Portugal-Germany lithium route challenge China's grip on the battery market?

, and Administrator

2026 January 30 . 1:15 PM

1 min read

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Europe's 'Lithium Highway' Aims to Break China's Battery Supply Dominance

Dutch miner AMG Critical Materials is pushing ahead with plans to cut Europe's reliance on Chinese lithium processing. The company wants to build a 'lithium highway' linking Brazil, Portugal, and Germany. This move comes as Europe seeks alternatives to China for battery-grade lithium supplies.

AMG currently mines spodumene concentrate in Brazil and sends it to China for conversion. The refined material is then shipped to Germany, where the company's Bitterfeld plant turns it into lithium hydroxide. However, the Bitterfeld facility will now reach full capacity of 20,000 metric tons by the end of 2026—two years behind the original schedule.

The Barroso spodumene deposit in Portugal holds over 39 million tons of estimated reserves, making it Europe's largest. AMG plans to process lithium in Portugal, reducing the need to send raw materials to China. By expanding operations in Brazil, Portugal, and Germany, the company aims to create a fully western supply chain.

Europe's shift away from fossil fuels has increased demand for lithium, but local extraction and refining remain limited. Currently, China dominates the market, leaving few alternatives for battery production.

AMG's strategy would establish a new route for lithium processing outside China. The delayed Bitterfeld expansion and Portugal's Barroso reserves play key roles in this plan. If successful, the 'lithium highway' could reshape Europe's supply chain for electric vehicle batteries.