Rock Tech Evaluates Lithium Converter in Ontario with a $1.7 Billion NPV

Rock Tech Lithium (TSXV: RCK) has successfully completed a scoping study that highlights the economic feasibility of establishing a lithium conversion facility in Red Rock, Ontario. This study reveals a robust after-tax net present value (NPV) of C$2.3 billion (approximately $1.7 billion) and an internal rate of return (IRR) of 22.2%. The proposed facility aims to produce up to 32,000 tonnes of lithium carbonate equivalent (LCE) annually, utilizing both Rock Tech’s proprietary feedstock and materials sourced from third parties. This capability to process feed from various North American mines enhances the project's accessibility and operational efficiency.

Dirk Harbecke, CEO of Rock Tech, emphasized the significance of the study, stating, “The scoping study supports our North American plans with a strong business case.” He expressed confidence in the substantial opportunities that the project could create for the local region. Harbecke also noted the importance of forming partnerships with world-class entities and garnering robust political support, which he believes are crucial for the success of lithium projects, especially in today’s challenging market landscape.

In addition to its efforts in Ontario, Rock Tech is advancing a fully permitted lithium converter in Germany, aimed at meeting the growing demands of the North American market. A significant portion—up to 80%—of the basic engineering from the Guben converter will be applied to the new facility in Ontario, facilitating a faster project development timeline and offering a competitive edge to Ontario's first lithium converter.

The projected capital expenditure for the Red Rock facility is estimated at C$1.6 billion, with an anticipated operational lifespan of 25 years. The plant is designed to produce either lithium carbonate or lithium hydroxide monohydrate from spodumene concentrate, with the final decision on which product to focus on being determined by market demand.

Rock Tech envisions providing the electric vehicle and battery industry with sustainable, locally sourced lithium, aiming for a 100% recycling rate. To establish resilient supply chains, the company plans to construct lithium converters close to its customers, starting with a proposed Lithium Hydroxide Converter in Guben, Brandenburg, Germany. The second converter is set to be built in Red Rock, Ontario, Canada. Rock Tech intends to source raw materials from its Georgia Lake spodumene project in Ontario's Thunder Bay Mining District, while also procuring from other ESG-compliant mines. The ultimate goal is to create a closed-loop lithium production system.

To address critical gaps in the clean mobility sector, Rock Tech has assembled one of the industry's strongest teams. The company adheres to stringent environmental, social, and governance (ESG) standards and is developing a proprietary refining process aimed at enhancing both efficiency and sustainability.