Rock Tech forecasts 23% OpEx cut for Guben lithium converter

Rock Tech Lithium (TSX‑V: RCK; US‑OTCQX: RCKTF) reported a significant milestone in developing its Guben lithium converter. After comprehensively updating its operating expenditure (OpEx) model, the company expects to cut the modeled cost of producing lithium hydroxide by about 23% — from roughly EUR 5,033 per tonne to EUR 3,878 per tonne (based on an annual output target of 24,000 tonnes). That change reduces annual project OpEx by approximately EUR 27.7 million, from EUR 120.8 million to EUR 93.1 million.

The Guben lithium converter is a pioneering facility in Guben, Brandenburg, Germany, by the German-Canadian company Rock Tech Lithium. This plant is set to become Europe's first commercial lithium hydroxide refinery aiming to produce 24,000 tonnes of battery grade lithium hydroxide annually (equivalent to approximately 30 GWh of battery capacity) – enough, based on an average consumption of 0.8kg per kWh and 60 kWh per EV, to supply batteries for approximately 500,000 electric vehicles per year.

The modeled reduction reflects updated cost inputs across several key areas.

• Transport and logistics: Transport and logistics expenses will fall by EUR 11.7 million (47%), from EUR 25 million to EUR 13.3 million, after the company adopted a revised logistics concept. This item accounts for 42.2% of the total projected OpEx decrease. The largest part of the decline stems from an updated spodumene supply contract with more favorable Incoterms, which reduce shipping obligations and expected logistics costs by EUR 10.4 million.

• Reagent procurement: Revised supplier offers reduce reagent procurement costs by EUR 2.8 million, from EUR 25.9 million to EUR 23.1 million, contributing roughly 10.1% of the total projected savings.

• Fixed costs: Refined estimates for annual fees, office expenses, insurance, and IT costs will decrease by EUR 4.2 million, from EUR 10 million to EUR 5.8 million, accounting for about 15.2% of total OpEx savings.

• Leach residue reuse: The company expects a positive cost impact of up to EUR 6.3 million by reusing leach residues instead of disposing of them, under a memorandum of understanding with Schwenk Zement GmbH & Co KG. This initiative contributes approximately 22.7% of the total OpEx reduction. The companies intend to finalize binding offtake agreements for the leach residues in due course.

• Additional savings: The company also expects to reduce costs through maintenance savings and refined labor estimates, producing an additional EUR 2.7 million in project OpEx reduction.

Rock Tech expects increased energy costs to be mitigated by a sustainable long‑term energy supply agreement currently under negotiation with Enertrag SE. This cost improvement positions Rock Tech as an internationally competitive player in the lithium‑refining market.

"This significant cost reduction is a major step forward," says Mirco Wojnarowicz, CEO of Rock Tech. "In today's volatile market, establishing a lean and competitive project is not just beneficial—it's essential. For our equity and debt financing partners, OpEx is one of the most critical benchmarks for project viability. By reducing our modeled costs by 23%, we are not only improving competitiveness but also significantly strengthening the financing case for Guben."

The company is also conducting a parallel review of capital expenditures (CapEx). It will publish an updated financial model and full profitability analysis once the review is complete in the coming weeks.

Rock Tech remains committed to building one of Europe's first lithium hydroxide converters and to supporting the transition to sustainable mobility with a reliable, local supply of critical battery materials.

More information is posted on www.RocktechLithium.com/de/