TORONTO, May 7, 2024
/CNW/ - Rock Tech Lithium Inc (TSXV: RCK) (OTCQX: RCKTF) (FWB:
RJIB) (WKN: A1XF0V) issues update on outstanding German subsidy
application. Subsidy applications will shift to state-level. Rock
Tech will not receive funds from federal TCTF-subsidies programme.
Instead, negotiations continue to finalize financing programmes
with the state of Brandenburg.
The Federal Ministry for Economic Affairs and Climate Action
(BMWK) has informed Rock Tech Lithium that it will not grant
funding under the 'Resilience and Sustainability of the Battery
Cell Manufacturing Ecosystem' (TCTF) program for the planned
lithium refinery in Brandenburg. The reason being federal budget
constraints. At the same time, the state of Brandenburg has
promised its full support and is working hard to examine how the
plant in Guben can be financially supported at state level.
The applications for further federal funding, e.g. for governmental
guarantees, are still open. Rock Tech regrets the federal
ministry's decision and is examining all available options going
forward. Priority is being given to realising the plant with the
support of the state of Brandenburg. The project is unique in
Germany in terms of size, project
maturity and strategic importance.
Dirk Harbecke, CEO &
Chairman, comments: 'The length of the TCTF application
process and the associated lack of clarity has led to frustration
among many involved parties. We are confident that the continuation
of subsidy talks at state level can happen at an accelerated pace
so that we can make a final investment decision as quickly as
possible. Of course, we feel bound to Brandenburg and especially to
the city of Guben and want to build our first lithium converter
here. We are a key building block for the developing battery
cluster in Brandenburg state. Minister President Woidke, Economics
Minister Steinbach and Guben's Mayor Mahro have supported us
intensively and in partnership right from the start. We really
appreciate that. However, at the same time, the international
markets, especially North America
and the Gulf States, are highly competitive when it comes to
attracting future technologies."
Rock Tech Lithium has achieved considerable project maturity in
Guben.
- Mercedes Benz AG ('MBAG') is Rock Tech's main customer. The two
companies have concluded a binding purchase agreement in 2023 for
the supply of 10,000 tonnes of battery-grade lithium hydroxide per
year.
- The supply of raw materials for the converter is also secured.
The company recently announced a binding feedstock supply agreement
with C&D Logistics, one of the world's leading lithium traders.
Until now, C&D's focus has been on supplying the Chinese
market. With this agreement, C&D Logistics will also supply
Europe with ESG-compliant
spodumene concentrate from Australia, Brazil and Africa. Rock Tech plans to use up
to 50% recycled feedstock from 2030 onwards for its Guben
plant.
- Planning and basic engineering of the refinery have been
finalised with upfront investments of over 40 million euros. The final approval for the
construction and operation of the converter is imminent and the
construction partners have been secured.
- The concept for the utilisation of by-products has been
developed in cooperation with the partners of ITEL (Lithium
Institute of the University of Halle), GP Günter Papenburg AG,
Schwenk Zement GmbH & Co. KG and Knauf Gips KG. The aim is,
among other things, to use aluminosilicate from lithium processing
in a resource-efficient manner in the building materials
industry.
Kerstin Wedemann, Chief Legal
& Operations Officer, adds: „With receipt of the final permit
in May, Rock Tech will hold the blueprint for the most modern
lithium converter in Europe in its
hands. The German permit to build and operate such a plant is of
significant value. Few other countries apply such strict guidelines
for technical and emissions approvals. This will mean that our
concept is validated and can be transferred to other markets. This
is already happening at our site in Canada, where we want to build Ontario's first Lithium converter. We have
already secured the first partnerships in Ontario, approval planning has begun and
subsidy applications are underway there. "
ABOUT ROCK TECH
Rock Tech is a cleantech company with operations in Canada and Germany on a mission to produce lithium
hydroxide for electric vehicle batteries. The Company plans to
build lithium converters at the doorstep of its customers, to
guarantee supply-chain transparency and just-in-time delivery,
beginning with the Company's proposed lithium hydroxide merchant
converter and refinery facility in Guben, Germany. The second Lithium converter is
planned to be built in Red Rock, Ontario,
Canada. Rock Tech plans to source raw material from its
wholly-owned Georgia Lake spodumene project located in the Thunder
Bay Mining District of Ontario,
Canada, as well as procuring it from other responsibly
producing mines. In the years to come, the Company expects to also
source raw material from discarded batteries. To close the most
pressing gap in the clean mobility story, Rock Tech has gathered
one of the strongest teams in the industry. The Company has adopted
strict environmental, social and governance standards and is
developing a proprietary refining process aimed at further
increasing efficiency and sustainability. Rock Tech's goal: to
create a closed-loop lithium production system.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
CAUTIONARY NOTE CONCERNING
FORWARD-LOOKING INFORMATION
Certain statements contained in this news release constitute
"forward-looking information" under applicable securities laws and
are referred to herein as "forward-looking statements". All
statements, other than statements of historical fact, which address
events, results, outcomes or developments that the Company expects
to occur are forward-looking statements. When used in this news
release, words such as "expects", "anticipates", "plans",
"predicts", "believes", "estimates", "intends", "targets",
"projects", "forecasts", "may", "will", "should", "would", "could"
or negative versions thereof and other similar expressions are
intended to identify forward-looking statements.
Forward-looking statements by their nature are based on
assumptions and involve known and unknown risks, uncertainties and
other factors which may cause the actual results to differ
materially from the forward-looking statements, including the
risks, uncertainties and other factors discussed in the Company's
most recent management's discussion and analysis and annual
information form filed with the applicable securities regulators,
or known and unknown risks and uncertainties that may the Company's
ability to access the funding via the German state of Brandenburg
and/or any additional funding required to invest in available
opportunities and projects (including the Company's converter
projects and the Georgia Lake project).
No assurances can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, and the
Company cautions the reader not to place undue reliance upon any
such forward-looking statements. The Company does not intend, nor
does it assume any obligation to update or revise any of the
forward-looking statements, whether as a result of new information,
changes in assumptions, future events or otherwise, except to the
extent required by applicable law.
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SOURCE Rock Tech Lithium Inc.