Rock Tech secures binding feedstock offer for its Guben Converter

Binding Feedstock Offer for Guben Lithium Plant Secured. (CNW Group/Rock Tech Lithium Inc.)

TORONTO — Rock Tech Lithium Inc. announces that it has received a binding feedstock supply offer from Castelburg Industrie GmbH. Castelburg, a supplier in the automotive industry commits to supply a minimum of 250,000 dry metric tonnes of spodumene concentrate feedstock for the Company’s conversion facility in Guben, Germany over an initial five-year term of the envisaged agreement starting in 2024.

The execution of the binding supply agreement based on the terms of the Offer is subject to a positive result of ongoing due diligence. Under the supply agreement Rock Tech will annually source up to 60,000 dry metric tonnes from Castelburg’s source in Salta, Argentina, starting in H2 2024. The price of the spodumene concentrate is based on a discount to market prices and will be adjusted for the actual Li2O content. The supply agreement further provides for a potential increase of volumes and extension of the initial term subject to mutual agreement by the contract parties.

Dirk Harbecke, Rock Tech’s Chairman and CEO comments, “This is an important milestone for Rock Tech and the advancement of our Guben project, as independent 3rd party feedstock is a key step to finalize the financing for our German converter. Castelburg is another strong European industry partner backs us, offering its relationships in South America to support our feedstock sourcing strategy.”

The Guben converter will be Germany’s first spodumene concentrate to lithium hydroxide refinery with an annual name plate capacity of 24,000 tonnes battery-grade lithium hydroxide. The receipt of the full permit to build and operate the plant is expected for early 2024. The current market outlook for Europe predicts that Lithium conversion capacity will be the major bottleneck in building a sustainable and resilient battery supply chain. Rock Tech’s Guben converter will hence be vital for the European battery industry and supply lithium chemicals for approximately 500,000 electric vehicles.

The execution of the supply agreement, including all logistics handling and financing will be facilitated by RTT Lithium SA, a 50%/50% joint venture established by Rock Tech and Transamine SA. RTT is also executing the due diligence, the positive finalization of which is condition precedent for the execution of a supply agreement.