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Germany’s New Lithium Processing Plant Aims to Reduce Dependency on China and Strengthen Europe’s Battery Production Supply Chain

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Germany’s new lithium processing plant represents a significant step towards Europe’s ambition to diversify its battery production supply chains and reduce reliance on China for critical resources like lithium. The facility, being the first of its kind in Europe, aims to address the challenge of processing lithium into battery-grade materials domestically. Despite the establishment of this refinery, Europe remains largely dependent on China for sourcing and refining lithium, underscoring the urgent need for the continent to develop its own material supply chains to support its green future.

  • Europe’s industry needs resources like lithium to advance in battery production, crucial for a green future.
  • The new lithium processing plant in Germany is key to diversifying supplies and reducing reliance on China.
  • China currently dominates the refining of lithium and the know-how for processing it into battery-grade materials.
  • AMG Lithium’s Frankfurt laboratory has developed processes for refining lithium hydroxide, essential for battery production.
  • The company sources lithium rock from Brazil, which is initially processed in China due to the lack of local conversion facilities.
  • The Bitterfeld-Wolfen site in Germany has been chosen for AMG’s industrial production, with plans for significant expansion.
  • The plant aims to refine 20,000 tons of lithium hydroxide per year in its first phase, despite recent challenges in investment due to falling lithium prices.
  • European governments and the EU have pledged more support for building up the critical mineral sector, including public subsidies for the plant.
  • The European Union’s Critical Raw Materials Act aims to reduce dependency on imports by setting ambitious targets for mining, refining, and recycling within Europe by 2030.
  • Significant investment is required to meet the EU’s 2030 targets for lithium, highlighting the gap between current pledges and the actual needs of the sector.

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