Rock Tech eyes 100 million Euros in German lithium grants
Rock Tech Lithium Inc. [RCK-TSXV] said it expects to receive up to 100 million Euros in direct grants for its German lithium refinery. It said the funding will be provided by the State of Brandenburg and the German Railway Authority. “Further applications for federal guarantees are ongoing,” the company said in a press release, Thursday.
Rock Teck shares rallied on the news rising 8.4% or 13 cents to $1.68. The shares trade in a 52-week range of $2.14 and 95 cents.
Rock Teck’s vision is to supply the electric vehicle and battery industry with sustainable, locally produced lithium, targeting a 100% recycling rate. To ensure resilient supply chains, the company plans to build lithium converters at the doorstep of its customers, starting with the company’s proposed Lithium Hydroxide Converter in Guben, Brandenburg, Germany. The company is planning for a second converter to be built in Red Rock, Ont. The company plans to source raw material from its own Georgia Lake spodumene project in the Thunder Bay Mining District of Ontario and procure from other ESG-compliant mines.
The 100%-owned Georgia Lake spodumene project is located about 145 kilometres northeast of Thunder Bay. According to a NI 43-101-compliant estimate, the project hosts a measured resource of 1.89 million tonnes, grading 1.04% Li2O, an indicated resource of 4.68 million tonnes of grade 1.00% Li2O, and an inferred resource of 6.72 million tonnes of grade 1.16% Li2O.
Ultimately, Rock Teck’s aim is to create a closed-loop lithium production system. In keeping with that goal, the company intends to build and operate Europe’s first Lithium Converter with a capacity of 24,000 tonnes of Lithium-Hydroxide-Monohydrate annually. The refinery will be built in Guben and requires financing of approximately 800 million Euros.
On Thursday, Rock Teck said it has received a binding letter of intent (LOI) signed by the Minister of Economic Affairs in Brandenburg, Joerg Steinback, for the grant of up to 90 million Euros in subsidies for the Gruben project. In addition, the company said its application for federal funding from the German Railway Authority is progressing well and is expected to lead to a contribution of another 10 million Euros in grants. “This funding is expected to be provided under the “Anschlussbahnförderung” and will support the company’s ambition to shift transport from road to rail, a crucial component of the project’s logistics concept.’’
“These subsidies are a major milestone for us and a big step towards the realization of the Gruben Converter,’’ said Rock Teck CEO Dirk Harbecke. “Together with the possible federal guarantees, we are targeting governmental financial support of up to 500 million euros,’’ he said. “In addition to these substantial subsidies, we have signed a binding feedstock agreement with a leading lithium trading house, C&D Logistics Group, for procurement of raw material for our converters and received a full construction and operations permit approvals for Guben.” Harbecke went on to say that he is very confident that the company will finalize the remaining financing steps for Guben in the coming months.