#Lithium Supply Chain #Rock Tech #Arcore AG #Canada, Switzerland, Germany, Bosnia-Herzegovina #Toronto, Zug, Guben, Lopare

Rock Tech and Arcore AG Form New European Lithium Venture

In a significant move to enhance the lithium supply chain in Europe, Rock Tech Lithium Inc. and Arcore AG have announced their merger of subsidiaries. This collaboration aims to create a fully integrated lithium company capable of supplying battery-grade lithium products throughout Europe, addressing the growing demand associated with the electric vehicle (EV) market.

The newly formed entity will manage Rock Tech's advanced Guben Converter situated in Germany, alongside Arcore's Lopare lithium project located in Bosnia-Herzegovina. With the increasing need for lithium driven by the energy transition, this joint venture is positioned to provide a robust supply of critical raw materials, reducing Europe’s reliance on imports.

Merger Details and Strategic Goals

The binding Business Combination Agreement (BCA) was officially signed on February 19, 2025. Under the terms of the agreement, Rock Tech will hold a 75% stake in the newly created company. The merger is set to finalize in the second quarter of 2025. By combining resources and expertise, the partnership aims to solidify Europe’s position as a competitive player in the global battery materials market.

Dirk Harbecke, CEO and Chairman of Rock Tech, emphasized the importance of a strong European supply chain. He stated, “Securing the region's strategic autonomy and promoting industrial competitiveness is crucial for transitioning to a climate-neutral economy.”

The Need for Lithium in Europe

Lithium, a key mineral in the production of batteries for electric vehicles and energy storage systems, is expected to see demand in Europe increase threefold by 2030, as noted by McKinsey’s Battery Insight Demand Model. This ambitious growth underscores the need for a local, reliable supply chain that can meet such a sharp rise in demand.

The Lopare Project

Arcore's Lopare project boasts an estimated lithium carbonate equivalent of 600,000 tonnes, and it is expected to produce lithium sulphate feedstock for the Guben Converter starting in 2030. This innovative approach is aimed at establishing a circular lithium economy, significantly cutting production costs and simultaneously adding value locally in Bosnia-Herzegovina.

Rock Tech will leverage its extensive experience gained through the development of its Georgia Lake lithium project in Canada. It aims to engage local communities actively and fulfill all environmental, social, and governance (ESG) commitments. The incorporation of the Initiative for Responsible Mining Assurance (IRMA) certification process is also a priority, aligning with both companies' dedication to sustainable practices.

Guben Lithium Converter Specifications

The centerpiece of Rock Tech's endeavors in Europe is the Guben Lithium Converter, designed to produce battery-grade Lithium-Hydroxide Monohydrate (LHM) for up to 500,000 electric vehicles annually. This facility is nearing its final financing phase, with all necessary construction, environmental, and operation permits secured.

An engineering and project management firm has been selected to oversee the Guben Converter project, which has garnered support from the state of Brandenburg due to its strategic significance in the local economy and environment.

Future Prospects of Lithium Supply Chain

With this merger, Rock Tech and Arcore are taking a critical step towards creating a sustainable lithium supply chain that not only meets the demands of Europe’s growing electric vehicle market but also enhances international competitiveness. The integration of technical resources and local market insights is poised to reinforce Europe’s battery sector and overall energy transition goals.

The collaboration signals a strategic commitment to developing an independent supply chain for critical metals, marking a pivotal moment for the lithium industry in Europe and aligning with global sustainability initiatives. As the transition to a greener economy accelerates, partnerships like this are essential for a sustainable future.

As the project progresses, both companies are set to explore further opportunities to enhance resource efficiency and sustainability while also aligning their operations with best practices in environmental stewardship. The merger not only cultivates economic growth but also strengthens the foundation for a greener future in Europe.