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Rock Tech Lithium Enhances Guben Project Competitiveness

Rock Tech Lithium Inc., a company recognized for its innovative approach in the lithium supply chain, has made strides in its Guben Lithium Converter project, located on the German-Polish border. On October 23, 2025, the company reported a significant reduction in capital expenditures (CapEx) estimates for this fully permitted lithium refinery. The new CapEx estimate has been adjusted down from €730 million to approximately €680 million, reflecting a total reduction of €50 million. This strategic adjustment results from targeted optimizations across various project components aimed at reinforcing the project's competitiveness in the international market.

In addition to the estimated CapEx reduction, the company previously disclosed a modeled reduction of approximately 23% in operating expenditures (OpEx) as of September 17, 2025. Together, these improvements not only position Rock Tech more favorably against global competitors but also bolster its readiness for financing.

Henrik Wende, Managing Director of Rock Tech Guben GmbH, emphasized the positive implications of these cost reductions. He stated, "The combination of modelled operating cost reductions and estimated capital cost savings will fundamentally change the business case for Guben." This sentiment reflects the company's commitment to enhancing economic viability while decreasing both production costs and initial investment expenditures.

Breakdown of Cost Reductions

The €50 million reduction arises from various focus areas:
1. Optimized Plant Design: By refining certain aspects of the plant's architecture—like packaging systems and emission measurements—savings of around €22 million were achieved, bringing costs down from €62 million to €40 million.
2. Adjusted Storage Capacities: To align with a new logistics approach, on-site storage expenses decreased from €35 million to €28 million, saving an additional €7 million.
3. Process Optimizations: Changes that fit with permit requirements provided savings of €14 million, lowering costs from €88 million to €74 million.
4. Updated Supplier Estimates: Revisions to procurement practices realized savings of approximately €16 million, reducing estimates from €597 million to €581 million.
5. Contingency Adjustments: A minor re-evaluation of contingency expenses led to a €3 million saving.
6. Overall Savings: These gross savings of approximately €62 million were slightly offset by a €12 million cost increase in other areas, resulting in a net reduction of €50 million.

Looking ahead, Rock Tech plans further optimizations focusing on enhancing operational readiness costs. Additional savings are anticipated through improved design consensus and partnerships during project execution with a specialized external solutions provider, Worley.

Collaboration with Sichuan Calciner Technology

As a complementary measure to its optimization strategy, Rock Tech has entered into a non-binding memorandum of understanding (MoU) with Sichuan Calciner Technology (SCT) for potential collaboration on engineering and operational enhancements at the Guben facility. This development underscores Rock Tech’s commitment to leveraging expertise that can drive efficiencies in lithium processing, a market segment critical to the manufacturing of electric vehicle batteries.

SCT, acclaimed in the lithium refining space, has executed over 60 lithium converter designs globally. Should the partnership materialize, it could provide Rock Tech with additional avenues for optimizing both costs and technology implementations.

The Guben Converter Project

The Guben Lithium Converter stands as a pioneering project positioned within one of Europe’s crucial lithium refining ventures. The facility's ambition is to produce 24,000 tonnes of battery-grade lithium hydroxide each year, sufficient to power around 500,000 electric vehicles annually. With a strategic location near major automotive and battery manufacturing hubs, the Guben Converter is poised to play a vital role in fostering the European battery supply chain while adhering to high environmental standards.

Recognized as a strategic initiative under the EU's Critical Raw Materials Act, the Guben project not only enhances the regional economy by creating approximately 200 jobs but also represents a significant effort to regionalize and decarbonize the lithium supply chain.

Expanding on its responsible sourcing commitments, Rock Tech aims to establish a robust and locally sustainable lithium supply, ensuring an efficient path from raw materials to battery-grade lithium, ultimately supporting the transition to a greener economy.

In conclusion, Rock Tech's recent developments concerning cost optimizations at the Guben Lithium Converter showcase its dedication to not only improving its financial outlook but also reinforcing its strategic position within the burgeoning lithium industry.

For further updates regarding Rock Tech's initiatives and projects, please stay tuned to their official communications.