Binding Offer from Castelburg Industrie GmbH
Rock Tech Lithium has secured a binding feedstock supply offer from Castelburg Industrie. The offer entails a minimum supply of 250,000 dry metric tonnes of spodumene concentrate for Rock Tech’s lithium conversion facility located in Guben, Germany. This five-year agreement, starting in 2024, marks a pivotal development in the company’s project advancement.
Agreement Terms and Supply Conditions
Subject to satisfactory due diligence outcomes, Rock Tech will procure up to 60,000 dry metric tonnes per year from Castelburg’s Argentinian operations in Salta, commencing in the latter half of 2024. The pricing for the spodumene concentrate will be set at a market-related discount, adjusted according to the Li2O content. The agreement also allows for the possibility of increased supply volumes and an extended contract duration, based on mutual consent.
Strategic Importance for Guben Project
Dirk Harbecke, Chairman and CEO of Rock Tech, emphasized the significance of this agreement for the Guben project, particularly in securing independent third-party feedstock critical for finalizing the project’s financing. This collaboration with Castelburg Industrie GmbH reinforces Rock Tech’s strategic feedstock sourcing and showcases its robust industry relationships in Europe.
Guben Converter’s Role in European Battery Industry
The Guben facility is poised to become Germany’s inaugural lithium hydroxide refinery, converting spodumene concentrate into battery-grade lithium hydroxide with a yearly capacity of 24,000 tonnes. The converter, expected to be fully permitted by early 2024, is set to significantly contribute to the European battery industry, supplying lithium chemicals sufficient for about 500,000 electric vehicles annually.
Collaborative Efforts and Future Outlook
The execution of the supply agreement, alongside logistics and financing aspects, will be managed by RTT Lithium SA, a joint venture between Rock Tech and Transamine SA. The finalization of the agreement is contingent upon the successful completion of due diligence by RTT.