Rock Tech Lithium (CVE: RCK) has signed a memorandum of understanding with Siemens AG (ETR: SIE) subsidiary Siemens Canada Ltd. to support the development of a planned lithium conversion facility in Red Rock, Ontario.
Announced on Wednesday, the agreement focuses on deploying Siemens’ digital twin technology to help design, build and operate the proposed plant.
The companies signed the deal Monday during the Canadian Critical Minerals Forum hosted by Natural Resources Canada at the Prospectors and Developers Association of Canada convention in Toronto.
Rock Tech plans to use Siemens’ digital twin platform to simulate and optimize the Red Rock converter before and during construction. Consequently, the technology could help engineers test processes virtually and improve efficiency before equipment operates on site.
The companies said the collaboration reflects broader cooperation between Canada and Germany on critical mineral supply chains.
Siemens Canada will contribute industrial automation expertise and digital engineering tools to the project. Meanwhile, Rock Tech intends to adapt the design of its fully permitted lithium converter in Guben, Germany for the Ontario facility.
By transferring that blueprint, the companies expect to shorten development timelines and reduce technical risks. In addition, they said the approach could improve capital efficiency during construction and early operations.
The partners also plan to explore potential funding programs to support the deployment of digital twin systems at the Red Rock project.
Rock Tech’s planned converter would produce up to 32,000 tonnes of lithium carbonate equivalent annually. That output could supply material for roughly 900,000 electric vehicles each year.
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Projects aim to establish regional supply chain
Chief executive Mirco Wojnarowicz said the Red Rock facility would become Ontario’s first lithium conversion plant. Furthermore, he said the project represents an important step toward building domestic processing capacity for critical minerals.
Wojnarowicz also described the converter as part of a broader vertically integrated supply chain in the province. Additionally, he said Rock Tech intends to connect the facility with its Georgia Lake lithium mining project.
Together, those projects aim to establish a regional supply chain that converts mined lithium into battery-grade material in Ontario.
Germany’s Parliamentary State Secretary Stefan Rouenhoff welcomed the collaboration between the companies. He said stronger industrial ties between Canada and Germany support efforts to secure reliable critical mineral supplies.
However, many Western governments still depend heavily on foreign processing capacity for battery materials.
Consequently, projects like Red Rock form part of wider efforts across G7 countries to strengthen domestic midstream critical mineral infrastructure.
Lithium sits at the centre of the global energy transition, but the market currently faces a significant supply glut. Over the past two years, producers rapidly expanded output to meet anticipated electric vehicle demand. Consequently, lithium prices collapsed from their 2022 peaks as supply outpaced consumption.
Meanwhile, China dominates much of the world’s lithium refining and battery manufacturing capacity. Western governments view that concentration as a strategic vulnerability. Additionally, the United States, Canada and European Union now push to build domestic lithium supply chains.
However, new mines and converters take years to develop. In the near term, the oversupply has pressured producers and delayed some projects. Consequently, many governments continue supporting lithium investments to secure long-term energy and industrial security.
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