Bitterfeld-Wolfen, a town in Germany once known for ecological issues, is now at the forefront of the country’s green transition. It is set to host Germany’s first large-scale lithium refinery, a vital component of Europe’s strategy to localize the extraction and refinement of essential raw materials for electric vehicle batteries.
The AMG Lithium plant in Bitterfeld-Wolfen, located about 140 kilometers from Berlin, is slated to start producing lithium in May. Stefan Scherer, CEO of AMG Lithium, noted that the plant was initiated over four years ago in anticipation of the battery demand surge. Its location was strategically chosen for its proximity to key players in Germany’s automotive industry.
Europe is increasingly aware of its dependency on imports of rare metals, especially from China, amidst growing geopolitical tensions. China, not the largest producer but a significant processor of raw lithium, also holds a substantial share in global battery production.
The European Union has proposed measures to secure supplies and boost the extraction and processing of critical raw materials, including lithium, cobalt, and nickel. Scherer mentioned ongoing discussions with political leaders about financial resources for AMG’s future expansion.
The Bitterfeld-Wolfen refinery, with an initial capacity to produce 20,000 tonnes of lithium hydroxide per year, could supply material for approximately half a million car batteries. Plans for expansion could increase this capacity to 100,000 tonnes, meeting about 20% of European demand. Initially, the lithium will be imported from Brazil.
The EU aims to ensure 40% of its critical materials refining is done within Europe. From Portugal to central France, various projects are underway to extract and process lithium.
The shift to local lithium production is seen as a resilience measure for German industry, particularly carmakers, against international supply chain disruptions. Yoann Gimbert, an e-mobility specialist, highlights the strategic importance of this relocation.
Additionally, a mining project in Zinnwald, near the Czech border, supported by AMG, aims to exploit a significant lithium deposit, completing the supply chain. Anton du Plessis, CEO of Zinnwald Lithium, views projects like Zinnwald as crucial components in the EU’s strategy to secure the entire supply chain, from extraction to processing.
However, meeting the EU’s ambitious targets remains challenging, with analyst Cornelius Baehr noting that the current projects’ realization is uncertain. The timeframes for establishing new production sites suggest that achieving the EU’s 2030 goal will be demanding. Despite these hurdles, the developments in Germany signal a significant shift in Europe’s approach to securing a self-sufficient and sustainable lithium supply chain for its burgeoning green industries. 
