Key Takeaways
- Germany has identified 43 million tons of lithium carbonate equivalent (LCE) in the Altmark region, making it one of the largest known project-based resources worldwide.
- If developed, the reserves could supply material for around 500,000 electric vehicles each year by the 2030s.
- The real challenge lies not just in mining, but in processing and midstream battery production, which are still dominated by China.
- Success will depend on scaling direct lithium extraction locally, building refining capacity inside Europe, and creating an integrated battery supply chain.
A Game-Changing Discovery
The Altmark region of Northern Saxony-Anhalt has suddenly become the focus of Europe’s clean energy future. Neptune Energy has confirmed the presence of 43 million tons of lithium carbonate equivalent, positioning Germany as a potential heavyweight in the global battery market.
At full production, the site could generate around 25,000 tons of LCE each year starting in the 2030s. That would be enough to power roughly half a million electric cars annually. This discovery fits directly into the European Union’s Green Deal, which aims to localize EV battery production and reduce dependence on imported resources.
The Strategic Stakes
Lithium is often called “white gold” because of its critical role in the global clean energy transition. Today, China controls more than 60 percent of global lithium refining and most of the midstream battery materials such as cathodes and anodes.
Elaine Dezenski, senior director at the Foundation for the Defense of Democracies, points out that Germany’s find is only part of the equation. “It’s great for Germany that there’s a lot of lithium in the ground. But the real question is where does it get processed?” If brine from Altmark still has to be shipped to China for refining, Europe will remain dependent.
Technology and Environmental Questions
Neptune Energy plans to use direct lithium extraction, or DLE, a new technology designed to pull lithium from brine water without open-pit mining or evaporation ponds.
The potential advantages are clear: smaller land requirements, less visible disruption, and faster recovery cycles. But there are challenges. DLE has not yet been proven at scale. Even if the technology works, brine must still be processed into battery-grade carbonate, and that stage is still largely carried out in China.
Neptune has already run two pilot projects and began a third in September 2025. These tests will continue until mid-2026, followed by a demonstration plant to prove the system can operate commercially.
The Supply Chain Gap
Even if Germany can extract lithium efficiently, Europe faces another challenge: the midstream and downstream stages of the battery supply chain.
Cathode and anode production remains concentrated in China, with Korea and Japan also key players. Precursor materials for cathodes, known as pCAMs, are heavily tied to Asian supply chains. Other critical components, including electrolytes and separators, are also limited in Europe.
As Dezenski explains, “Europe will have to replicate a big chunk of the supply chain to get out of the problem. Without building refining and midstream industries, raw lithium is just the first step.”
What Companies Are Saying
Neptune CEO Andreas Scheck is optimistic. “We are well placed to contribute significantly to both German and European lithium supply. At an expected annual production level of around 25,000 tons of LCE in the 2030s, the project could supply battery material for approximately 500,000 electric vehicles each year.”
Dezenski is more cautious. “It’s great for Germany, but the real question is where does it get processed?”
What Happens Next
Neptune will continue testing several DLE technologies until 2026. After that, a demonstration extraction plant is planned as the next step toward commercial production. The company says it wants to process the lithium as close to the source as possible, ideally in Saxony-Anhalt itself, to secure a regional value chain.
Neptune is also working on offtake agreements to guarantee buyers for the lithium, and while financing appears promising, the company admits it is still too early for a final assessment.
The Bigger Picture
The discovery in Germany highlights a larger truth. Finding lithium reserves is only the beginning. If Europe truly wants energy independence, it must also build the infrastructure to refine, process, and manufacture batteries at scale. Without those steps, China’s dominance in the sector will continue.
This is a test case. If Germany can extract and process lithium responsibly at home while building a strong regional supply chain, it could reshape the balance of global energy power. If it cannot, Europe risks repeating the same dependency it is trying to escape.
