Baker Tilly supports AMG Lithium in structuring and implementation of a supply chain finance solution

The Baker Tilly partner responsible for the mandate, Markus Paffenholz, advised AMG Lithium GmbH and the listed parent company AMG Critical Materials N.V. together with the director responsible for the project, Jan-Philipp Bülow, and manager Benjamin Kortmann (all Debt Advisory) on the implementation and all business aspects of the transaction.

Together with AMG Lithium GmbH, the Baker Tilly Debt Advisory team first defined the transaction objectives and developed the necessary documents for the market approach of potential supply chain finance providers (FinTechs and banks). Through a targeted market approach, offers for several suitable supply chain finance products were obtained from both FinTechs and banks. After analyzing the structural features as well as the advantages and disadvantages of the offers, AMG Lithium GmbH opted for a supplier-side financing product (payment solution) via a well-known FinTech. As part of the competitive transaction process, US dollar refinancing facilities in the high double-digit million range were collected, so that a mid three-digit million amount of supplier payments can be carried out annually via the supply chain finance solution. The Baker Tilly Debt Advisory team supported AMG Lithium GmbH during the entire transaction process up to the first payment and led the negotiations from the first offer to the final program agreements.

The new supply chain finance solution is integrated into the existing group financing of the AMG Group, optimizes the net working capital and liquidity of AMG Lithium GmbH, ensures sufficient headroom for the volatile lithium prices and can grow with the planned future expansion of production by increasing the existing refinancing facilities.

About AMG Lithium GmbH and AMG Group
AMG Lithium GmbH is a German subsidiary of the listed company AMG Critical Materials N.V. With over 3,600 employees worldwide, the AMG Group generates sales of around USD 1.6 billion and is a supplier of critical raw materials, specialty materials and process technologies that drive the reduction of CO2 emissions worldwide. AMG Lithium GmbH is the operator of the first battery-grade lithium hydroxide refinery in the European Union. The refined high-quality lithium is a component of lithium-ion batteries for electric vehicles.

You can find out more about AMG Lithium GmbH here.
You can find out more about AMG Critical Materials N.V. here.