AMG Critical Materials N.V.'s subsidiary, AMG Lithium B.V., a wholly owned entity of AMG (EURONEXT AMSTERDAM: "AMG"), has made a capital investment of GBP 16 million (about USD 20 million) in Savannah Resources Plc ("Savannah"). Savannah is the developer of the Barroso Lithium Project, which holds Europe's largest spodumene lithium deposit. This investment grants AMG a 15.77% ownership stake in Savannah, positioning AMG as the largest shareholder.

The agreement entails a board seat at Savannah, a 5-year commitment to purchase 45,000 tonnes per annum (tpa) of spodumene (or 225,000 dry metric tons (DMT) in total), with an option to increase the purchase to 90,000 tpa of spodumene and extend it to 10 years (totaling 900,000 DMT) by offering Savannah an acceptable "full project financing solution" for the Project's development. Furthermore, both parties have agreed to work together to evaluate the potential expansion into downstream lithium activities in Portugal and Spain.

Under this agreement, Savannah and AMG will be supporting the goals of the 2023 European Critical Raw Materials Act by advancing domestic extraction and processing targets for lithium raw materials.

"We are pleased to collaborate with Savannah in advancing the Barroso Lithium Project, Europe's largest spodumene project. This partnership represents another stride in broadening our lithium resource portfolio," commented Dr. Heinz Schimmelbusch, Chairman and CEO of AMG.

"We are pleased to announce this partnership with AMG, marking a significant de-risking milestone for the Barroso Lithium Project. With this investment, Savannah is now fully funded to complete all its current work streams," stated Emanuel Proença, CEO of Savannah.

Savannah Resources is a mineral resource development company that owns the Barroso Lithium Project in northern Portugal, recognized as Europe's largest known battery-grade spodumene lithium resource.

AMG aims to supply essential materials and advanced process technologies to promote a more environmentally sustainable world. The company is dedicated to producing and enhancing energy storage materials like lithium, vanadium, and tantalum. Furthermore, AMG develops highly specialized systems for aerospace engines to minimize CO2 emissions, along with critical materials that contribute to reducing CO2 across various industries.

AMG's Lithium division encompasses the entire lithium value chain, aiming to decrease CO2 emissions for suppliers and customers alike. The Vanadium division leads the global market in recycling vanadium from oil refining by-products, integrating with AMG's vanadium, titanium, and chrome operations. AMG's Technologies division is a recognized leader in advanced metallurgy worldwide, offering engineering solutions to the aerospace engine sector. This division is pivotal in the development of AMG's expanding LIVA batteries and oversees mineral processing operations in graphite, antimony, and silicon metal.