Rock Tech Secures Up to 100 Million EUR in Grants for German Lithium Refinery
Rock Tech Lithium has announced it will receive up to 100 million Euros in direct grants for its lithium refinery in Guben, Germany. This funding comes from the State of Brandenburg and the German Railway Authority, with further applications for federal guarantees ongoing.
Brandenburg's Ministry for Economic Affairs, Labour and Energy has committed up to 90 million Euros in grants for Rock Tech's Lithium Converter project in Guben. Additionally, the Federal German Railway Authority has offered up to 10 million Euros to support the construction of train loading and unloading infrastructure. These subsidies will be distributed as non-dilutive equity grants throughout the construction period, contingent on the finalization of full equity and debt financing.
Rock Tech is also in the process of applying for up to 400 million Euros in federal guarantees to support its debt financing. The company is optimistic about receiving this support, which would bring the total potential governmental financial backing to 500 million Euros.
Dirk Harbecke, Rock Tech's CEO, stated that these subsidies mark a significant milestone for the company and the Guben Converter project. Harbecke expressed confidence in finalizing the remaining financing steps in the coming months. The company has already secured a binding feedstock agreement with C&D Logistics Group and received full construction and operations permit approvals for Guben.
The Investment Bank of the State of Brandenburg has vetted the project and confirmed that the state will grant funding once Rock Tech achieves full financing. These subsidies are part of the GRW funding scheme under the federal "Transformation Technologies" regulation, emphasizing the project's importance for Germany and Brandenburg's battery cluster. The signing and closing of the grant notice is expected in the fourth quarter of this year, with subsidies paid out during the construction period.
Kerstin Wedemann, Chief Legal & Operations Officer, highlighted that the positive subsidy decision will drive significant progress in the coming months, including finalizing debt and equity discussions, selecting a construction partner, ramping up the team, and initiating construction.
Rock Tech plans to build and operate Europe's first lithium converter with an annual capacity of 24,000 tonnes of lithium hydroxide monohydrate. The refinery in Guben requires approximately 800 million Euros in financing.
