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Europe's first lithium refinery: "We have only just started"
Frank-Thomas Wenzel
06.10.2023, 00:00 o'clock
Frankfurt am Main. Heinz Schimmelbusch is still a pioneer at the age of 79: At the end of the year, the first lithium refinery in Europe is to be approached in Bitterfeld-Wolfen. It was set up by the company AMG, headed by the manager. Lithium is the most important raw material for the batteries of electric vehicles, which is why the future of the local car industry is closely linked to the light metal. Schimmelbusch wants to deliver the first 10,000 tons to customers next year, which is enough for about 250,000 electric cars. However, this should only be the beginning: "There are forecasts that claim that more than 600,000 tons of battery-compatible lithium hydroxide will be needed annually in Europe in 2030. If everything works, we will then produce 100,000 tons," said Schimmelbusch in the RND interview.
Heinz Schimmelbusch, born in 1944, is the CEO of the Advanced Metallurgical Group (AMG), which is based in Amsterdam. Fourteen companies belong to the group, which achieved a profit of almost 43 million dollars (plus 44 percent compared to the previous year) in the second quarter with sales of 440 million dollars. Schimmelbusch was once the head of the metal company - one of the largest German industrial companies at the time. When the group was on the verge of bankruptcy due to questionable forward transactions, the responsibility was blamed on Schimmelbusch and his CFO. Both always denied a debt.
Mr. Schimmelbusch, you want to get big into the production of lithium for car batteries. A refinery is currently being built in Bitterfeld-Wolfen. Are you still in the plan?
At the end of the year, everything will be ready to start the plant in Bitterfeld-Wolfen. We are on the plan. This is followed by the qualification period - that is the most important thing. We must prove a specific quality of battery-capable lithium hydroxide to our customers. These are very complex processes. This will take half a year. We assume that we will be able to produce about 10,000 tons in the second half of the year. This can already be used to produce batteries for around 250,000 electric cars.
And do you already have customers for this?
Customers are several customers, whom we have not named publicly. These are manufacturers of cathodes for electric cars or car manufacturers who buy the lithium hydroxide and then pass it on as cathode material to the cell and cathode manufacturers of their choice. This is where production networks are created.
What will happen next?
We have a plan to bring the first 20,000 tons into beautiful production. Then we are the first lithium refinery in Europe with a remarkable lead. Elon Musk does the same for North America. We follow a very simple strategy: We are intensively in the project development of further lithium mines. If progress is advanced far enough, we will build a second module in our factory. 20,000 become 40,000 tons.
Where should the raw materials for Bitterfeld come from?
We are currently dismantling lithium in Brazil. However, we have also participated in the company that is promoting the important project in Zinnwald near Dresden. We are active in Portugal. Because there is a large lithium deposit there, which corresponds to the dimension of our pit in Brazil. We are still active elsewhere, including in South America, but we are not yet publishing this. And if we have identified sufficient resources, then we will harmonize this with the next expansion stages in Bitterfeld.
Where do your customers produce?
The clientele is in Europe. Because here the development of the battery industry is in full swing. There are forecasts that in 2030, more than 600,000 tons of battery-capable lithium hydroxide will be needed annually in Europe. If everything works, we will then produce 100,000 tons. We are currently in the process of pushing the second module onto the ramp in Bitterfeld.
There are forecasts that in 2030, more than 600,000 tons of battery-capable lithium hydroxide will be needed annually in Europe.
Heinz Schimmelbusch
German car manufacturers complain that electric mobility is not progressing as fast as expected. Is there a threat of a setback?
The Chinese CATL Group, the world's largest battery manufacturer, is currently building battery plants in Europe. If German car manufacturers now complain that they sell fewer electric cars than hoped, it is because Chinese competitors can produce these cars cheaper. Incidentally, I don't care if 600,000 or 500,000 tons will be needed in seven years. 100,000 tons will certainly be. Hence the dimensions of our refinery. We are realistic.
Compared to the world market leaders in the lithium business, your AMG Group is rather a small player. Aren't you afraid of being overrun by the big ones?
Please keep in mind: We have only just started. And the others have no refinery in Europe. We have the know-how leader in Europe. We operate a development laboratory in Frankfurt-Höchst that can produce batteries as pilot products. What is happening is at a world-class level.