The European Union (EU) has designed Rock Tech Lithium‘s (CVE: RCK) (OTCMKTS: RCKTF) (FRA: RJIB) highly anticipated lithium converter in Guben, Germany as a strategic project under the EU’s Critical Raw Materials Act.
According to a press release on Wednesday, the award shows the importance of Rock Tech Lithium’s converter to the European battery materials supply chain. Meanwhile, it boosts the company’s overall mission to provide Europe with sustainable, locally produced lithium.
The Guben converter is expected to produce 24,000 tons of battery-grade lithium hydroxide per year. This is enough to supply over 500,000 electric vehicles. This construction-stage project has a post-tax net present value (8 per cent) of USD$1.24 billion, with capital expenditures estimated at USD$762 million.
Instituted in May 2024, the Critical Raw Materials Act aims to strengthen the E.U.’s supply of 17 essential commodities for the energy transition. Subsequently, it accomplishes this feat by improving domestic extraction, processing, and refining capacity.
“This milestone not only affirms the strategic value of our Guben project but also positions us as a key enabler of Europe’s green industrial future,” said Dirk Harbecke, Rock Tech Lithium’s chairman and CEO.
The EU chose Rock Tech’s project from over 170 applications. It may receive funding from the European Commission’s 2-billion-euro initiative to support strategic projects through financing and guarantees. Furthermore, the company plans to build a second converter in Red Rock, Ontario.
Additionally, it will source material from its Georgia Lake spodumene project in the Thunder Bay mining District. The district holds 7.33 million tons at 0.82 per cent Li2O.
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Rock Tech raises $2.6M for conversion strategy
Rock Tech also closed a non-brokered private placement, raising CAD$2.64 million by issuing 2.6 million units at $1 per unit.
Existing shareholders and European funds subscribed to the offering. Also, the company plans to use the proceeds to advance its integrated conversion strategy and for general corporate purposes.
Each unit includes one common share and one warrant. Subsequently, each warrant allows the purchase of a share at CAD$1.30 for 36 months.
“On behalf of the entire team, I want to thank our shareholders for their continued trust and support,” said Derek Sobel, CFO of Rock Tech.
“Their commitment to our strategy and long-term vision drives us to deliver growth and value. We remain focused on advancing our projects and adhering to disciplined financial management.”
Additionally, Rock Tech granted 2.38 million stock options to directors, officers, and employees, with 800,000 allocated to directors and officers. The options, exercisable at $1.00, vest immediately and expire on March 24, 2030.
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