Rock Tech Lithium Inc. (TSX-V: RCK) is an emerging cleantech company advancing lithium assets in both Canada and Germany to produce lithium hydroxide for the electric vehicle (EV) supply chain. Rock Tech plans to build lithium converters at the doorstep of its customers, guaranteeing supply-chain transparency and just in time delivery.
In a ground-breaking move, Rock Tech has unveiled its plans to develop Ontario’s lithium refining landscape and establish the province’s first lithium converter in Red Rock, Ont. Leveraging its unparalleled expertise through the successful development of Europe’s first lithium converter in Germany and its proximity to its Georgia Lake Project, Rock Tech’s venture promises to position Red Rock, Ont. as Canada’s premier lithium refining hub.
Following a thorough site selection process, Rock Tech has designated the former Norampac paper mill site in Red Rock, Ont. as the optimal location for the lithium converter. This strategic decision is strengthened by a binding Cooperation Agreement inked between Rock Tech and the BMI Group, entailing a long-term lease for the converter location and a substantial CAD $5.5 million investment by BMI into the project.
The selection of Red Rock for Ontario’s first lithium converter was informed by multiple factors, including the availability of critical infrastructure, support from the local community and Indigenous partners, and its proximity to Rock Tech’s mining assets, notably the Georgia Lake Project.
Rock Tech’s Georgia Lake Project, situated approximately 60 kilometres north of Red Rock, boasts significant lithium resources. A recent Pre-Feasibility Study underscores its potential, revealing an Indicated Mineral Resource of 10.6 million tonnes of lithium oxide and an additional Inferred Mineral Resource of 4.2 million tonnes of lithium oxide. With a pre-tax net present value of CAD $290 million, the Georgia Lake Project represents a pivotal component of Rock Tech’s vertically integrated strategy, aligning mining and concentration with downstream converter operations.
Most recently, exploration efforts have unlocked potential in the East Conway area of the Georgia Lake Project through the discovery of multiple spodumene pegmatite showings. Numerous lithium-bearing pegmatites were discovered over the 2023 summer field program along a North-South corridor approximately one kilometer in length. Rock Tech plans to further its exploration in the region along with other high-priority targets within the property to increase its mineral resources.
The Georgia Lake Project’s strategic significance is highlighted by its integral role in Rock Tech’s broader vision of advancing collaboration within the North American EV supply chain. By deepening its vertically integrated approach, Rock Tech aims to capitalize on emerging opportunities and strengthen its position as a key player in the lithium market.
Meanwhile, Rock Tech’s converter business extends beyond the Canadian borders, with plans to build Europe’s first lithium converter in Guben, Germany. Rock Tech broke ground on its lithium hydroxide monohydrate (LHM) converter in March 2023. Site access has been secured and basic engineering for the plant has been completed through a series of three thorough engineering studies including the recent Front-End Loading Stage 3 (FEL 3) study. The FEL 3 study, completed in May 2023, demonstrated a post-tax NPV (eight per cent) of EUR 1,194 million (USD 1,246 million) with a post-tax IRR of 22.3 per cent. Furthermore, Rock Tech’s key customer for the Guben converter, Mercedes-Benz AG, has signed a 10-year offtake agreement under which they are purchasing 10kt of LHM per year.
In conclusion, Rock Tech’s recent milestones, from the ground-breaking Guben lithium converter to its vertically integrated Ontario operations, exemplify its commitment to building critical mineral supply chains in both Canada and Europe. As the company navigates regulatory hurdles and continues to forge strategic partnerships, it continues to set the pace in the lithium industry. Ultimately, Rock Tech’s vision is to supply the battery industry with sustainable and locally produced lithium targeting a recycling rate of 100 per cent.
