Amsterdam, 18 April 2025 --- In a significant development for the European lithium market, AMG Critical Materials N.V. (referred to as "AMG", traded on EURONEXT AMSTERDAM under the ticker "AMG") has announced that its subsidiary, AMG Lithium BV, has entered into an exclusive agreement with Grupo Lagoa. This partnership marks a historic step as AMG Lithium is set to become the first producer of spodumene concentrate in Portugal. The initial production capacity is projected to range between 8,000 and 9,000 tons per annum, with operations expected to commence in the first half of 2027, pending necessary government approvals.

This exclusive agreement is a culmination of successful pre-engineering efforts that began as a preliminary collaboration when the partnership was first announced on August 17, 2023. The collaboration aims to capitalize on the rich mineral resources of the Lagoa mine while ensuring that both companies benefit from the synergies of their combined experience and operational capacities.

Under the terms of this agreement, AMG will provide approximately 10 million Euros in capital expenditures as a loan to Grupo Lagoa. This financial backing is intended to support the establishment of a commercially sized pilot plant, which will serve as a vital stepping stone towards larger-scale production. In return, AMG gains expedited access to a local source of spodumene, a key raw material for lithium extraction, which is critical for supplying its lithium refinery located in Germany. The pricing for the spodumene supplied from the pilot plant will be based on current market prices.

Moreover, this agreement includes contingencies for the delivery of ore from Grupo Lagoa, should AMG Lithium decide to proceed with the construction of an industrial-sized spodumene processing plant at the Lagoa site, where exploratory activities are currently underway.

The partnership is particularly advantageous given the operational similarities between the Lagoa mine and AMGs existing operations in Brazil. Grupo Lagoa has a rich history, having operated a pegmatite mine that has been a notable supplier to the Portuguese ceramic and glass industry since 1984. Leveraging AMG's vast engineering and operational expertise gained in Brazil, the project aims to maintain a steady supply of essential materials for local customers while ensuring competitive production costs for both feldspar and lithium. Importantly, the venture is designed to have a minimal environmental impact, safeguarding local communities and ecosystems.

Fabiano Costa, who serves as the President of AMG Brazil and the Managing Director of AMG Lithium BV, remarked, Our partnership with Grupo Lagoa is a very significant step in establishing a European spodumene production base, building upon longstanding local experience and existing infrastructure. Producing spodumene concentrate and further processing it locally in both Brazil and Europe to supply our battery-grade lithium hydroxide plant in Bitterfeld, Germany is a key part of AMG Lithiums overall integration strategy.

About AMG

AMG is dedicated to providing essential materials and advanced process technologies that promote a more sustainable, less carbon-intensive world. The company is actively engaged in the production and development of energy storage materials, including lithium, vanadium, and tantalum. AMG also produces highly engineered systems that contribute to reducing CO2 emissions, particularly in aerospace engines, and addresses CO2 reduction across various other industries.

AMG's Lithium segment encompasses the entire lithium value chain, striving to minimize the carbon footprint for both its suppliers and customers. Additionally, the Vanadium segment holds a prominent position globally, leading in the recycling of vanadium from oil refining residues, while AMG's Technologies segment stands as a world leader in advanced metallurgy, providing engineering solutions to the aerospace sector worldwide. The company's operations extend to include innovative products like LIVA batteries and NewMOX SAS, which focuses on the nuclear fuel market, alongside its mineral processing operations in graphite, antimony, and silicon metal.

With approximately 3,600 employees, AMG maintains a global footprint, operating production facilities across Germany, the United Kingdom, France, the United States, China, Mexico, Brazil, India, and Sri Lanka. Additionally, the company has established sales and customer service offices in Japan, demonstrating its commitment to serving a diverse international clientele.

For further inquiries, please reach out to:

AMG Critical Materials N.V.
+1 610 975 4979
Michele Fischer
mfischer@amg-nv.com

Disclaimer

It is important to note that certain statements made in this press release may not represent historical facts and are instead forward-looking in nature. Such statements may pertain to AMGs plans, expectations, projections, objectives, and various future events related to the companys financial performance and strategic initiatives. Terms such as expects, believes, anticipates, plans, may, will, should, and similar expressions are intended to identify these forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, and there is no guarantee that predictions or forecasts will be realized. These statements are valid only as of the date of this release, and AMG disclaims any obligation to publicly update or revise any forward-looking statements in response to changes in circumstances or expectations.