AMG Lithium signs lithium hydroxide deal with European cathode plant

AMG Lithium signs lithium hydroxide deal with European cathode plant

AMG’s German plant will provide EcoPro’s Hungarian cathode plant with battery-grade lithium.

Blue View

Yesterday AMG Advanced Metallurgical Group announced that its wholly-owned subsidiary, AMG Lithium, has signed a binding supply agreement with South Korea’s EcoPro, for an initial three-year term.  AMG Lithium will supply EcoPro with a minimum of 5ktpy of battery-grade lithium hydroxide from its plant in Bitterfeld-Wolfen, Germany, which is under construction and scheduled to start commissioning in Q3 2023.  The material will be sent to EcoPro BM’s cathode materials production plant in Debrecen, Hungary, for which the first phase of construction is planned to be finished by H2 2024. 

The contract includes an option for additional volumes.  Initial quantities for qualification purposes are scheduled to be delivered in late 2023, with regular quantities to follow in 2024.  AMG Lithium plans to produce 20ktpy of battery-grade lithium hydroxide in the first module in Bitterfeld-Wolfen with four additional modules planned to achieve a total annual production capacity of 100ktpy.  

The move is a positive step for the growing European battery value chain.  Hungary is fast becoming a European hub for battery and automotive manufacturing.  Last month CATL announced plans to build a US$7.5Bn battery plant in the city of Debrecen, increasing its position in Europe.  Meanwhile, in part due to attractive subsidies, Nio, SK On, Samsung SDI and GS Yuasa all have lithium-ion assets under development in the country.  With regard to car production, BMW is building a plant in Debrecen, Audi has a factory in Gyor and Mercedes-Benz has a factory in Kecskemet. 

  • 07 Sep 2022
  • European Union
  • AMG Group
  • Lithium
  • Automotive
  • Batteries

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