Rock Tech Secures EUR 150 Million in Support for Guben Lithium Converter Project

Rock Tech Lithium Inc., a pioneering company in lithium production, has announced that it received significant backing from export credit agencies to propel its innovative Guben Lithium Converter project. The UK Export Finance (UKEF) and the Finnish export credit agency (Finnvera) have shown a strong interest in supporting this strategic endeavor with conditional, non-binding expressions of interest totaling up to EUR 150 million, constituting an essential aspect of the funding framework for large-scale infrastructure projects.

The Importance of the Guben Converter

The Guben project stands out as Europe's largest committed stand-alone lithium refinery initiative, designed to facilitate the continent’s transition to green energy. The Guben Converter is strategically positioned in Guben, Brandenburg, and aims to produce 24,000 tonnes of battery-grade lithium hydroxide annually, supplying approximately 500,000 electric vehicles every year. This project not only aims to enhance the local economy but also significantly strengthens Europe's battery supply chain by ensuring the availability of essential materials required for electric vehicle production.

Financial Structure and Future Prospects

The financial structure of this project is bolstered by a proposed senior debt tranche from the European Investment Bank (EIB) alongside the export credit agency support. On top of support from UKEF and Finnvera, ongoing discussions with export credit agencies from Europe, Australia, and China aim to gather further assistance in procuring key equipment essential for the project. Rock Tech's CFO, Chris Wright, expressed optimism about this strong backing, emphasizing its significance in realizing the company's vision and the project’s strategic importance for the EU's green energy goals.

The facility is set not only to produce lithium hydroxide but also to create job opportunities, with expectations that approximately 200 jobs will arise from the project, thus contributing to the region's economic vitality. The construction of this converter will utilize advanced crystallization technologies from GEA Group AG, ensuring high-purity lithium production while minimizing environmental impact.

Commitment to Sustainability

Rock Tech stands out with a mission focused on sustainability, targeting a recycling rate of 100% for lithium production. The company is committed to building converters near its customers, with plans for subsequent facilities, including another in Ontario, Canada. Raw materials will primarily be sourced from Rock Tech's own Georgia Lake spodumene project located in Ontario, along with procurement from other Environmentally, Socially, and Governance (ESG)-compliant mines.

Furthermore, the Guben Converter has been recognized under the EU's Critical Raw Materials Act, highlighting its role in securing vital components necessary for energy transition initiatives across the continent.

Moving Forward

As Rock Tech advances with the Guben project, the company aims to integrate a closed-loop lithium production system, ensuring that production processes remain efficient and aligned with sustainability goals. The strategic positioning of the Guben Converter, in proximity to major automotive and battery manufacturing hubs, strengthens Europe’s entire battery supply chain.

In summary, with significant financial support from UKEF and Finnvera and a clear commitment to sustainability and efficiency in lithium production, Rock Tech Lithium Inc. is set to play a pivotal role in shaping Europe's future energy landscape.