Dutch miner AMG bullish as it tightens grip on lithium supply chain
Dutch miner and lithium supplier AMG AMG.AS on Thursday forecast strong profitability as it cuts costs and tightens its grip on the supply chain of lithium, a key metal for electric vehicle batteries.
Rising demand for electric vehicles (EVs) is pushing miners and carmakers to secure raw materials like lithium needed for making batteries, while political stakes grow to bring the supply chain, currently dominated by Asia, closer to home.
"Our lithium strategy will result in extraordinarily high profitability," said the group's CEO Dr. Heinz C. Schimmelbusch during presentations for the group's capital markets day in Germany.
"By establishing our own complete lithium value chain, we are supporting the European battery material independence," Schimmelbusch added in a statement.
AMG's plant in Bitterfeld, Germany, will start production of lithium hydroxide in the fourth quarter. By 2024, the group's subsidiary AMG Lithium GmbH will produce an annual 20 000 metric tons of lithium hydroxide in Bitterfeld-Wolfen, enough to supply batteries for around half a million electric vehicles, the company said.
It said a contract has already been signed with South Korea's EcoPro for at least 5,000 metric tons annually.
In February, AMG posted record results, helped by lower costs of its lithium operations, and confirmed a core profit outlook of above 400 million dollars in 2023, despite falling prices of lithium.
"Looking at year-to-date February 2023 results, we had a very good start," the CEO said.
Pressed on fluctuating lithium prices, Schimmelbusch downplayed the impact on AMG's first quarter and declined to give a quantified outlook for the first quarter.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
As a reticulator, Egoli Gas provides natural gas to homes and businesses via underground pipes.
VISIT SHOWROOM
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
