Lithium Ionic advances project financing with LOI for $266m
The funding represents 100% of the capital expenditure outlined in a May 2024 feasibility study.
Rock Tech Lithium (TSXV: RCK) has made further progress on the construction of its Guben lithium converter project in Germany following the announcement of two milestones related to site preparation.
First, the state railway supervisory authority has approved the Guben Süd industrial zone train line to Rock Tech’s site within the industrial area, officially connecting the Guben converter to Germany’s rail network. Second, the relocation of the ONTRAS gas pipeline on the property has been finalized, giving Rock Tech ownership of the pipeline starting on January 1, 2025.
These achievements mark significant progress in the development of the Guben converter site, said Rock Tech. With nearly all preparatory construction tasks complete, the final steps include fencing the property and constructing a gas pressure reduction station, both scheduled for early 2025.
Rock Tech’s Guben converter is set to play a pivotal role in Europe’s transition to sustainable energy by providing locally refined lithium hydroxide for electric vehicle batteries. The company first announced plans to build the converter in Guben, Brandenburg, in October 2021. Permission to start early construction was granted in January of 2023.
Once complete, the Guben converter will be the first of its kind in Europe, with expected annual production capacity of 24,000 tonnes of battery-grade lithium hydroxide from 2025. Total cost of the project is estimated at 650 million euros.
The decision to build the converter follows an Europe-wide search by Rock Tech for a location to refine the raw material sourced from its Georgia Lake lithium project in Ontario. In addition to the Guben site, the company is also looking to build a second converter in Ontario.
Rock Tech Lithium’s shares gained 1% following the announcement, trading at C$1.01 apiece as of noon EDT. The company has a market capitalization of C$112 million.
Comments