Rock Tech Lithium Projects 23% Reduction in Operating Costs for Guben Converter

Core Viewpoint - Rock Tech Lithium Inc. has announced a significant milestone in the development of its Guben Lithium Converter, projecting a 23% reduction in the cost of producing lithium hydroxide, which enhances its competitiveness in the market [1][7]. Operational Expenditure (OpEx) Summary - The modeled cost of producing lithium hydroxide is expected to decrease from approximately EUR 5,033 per ton to EUR 3,878 per ton, resulting in an annual OpEx reduction of about EUR 27.7 million, from EUR 120.8 million to EUR 93.1 million [1][4]. - Key areas contributing to the OpEx reduction include: - Transport and logistics expenses projected to decline by EUR 11.7 million (47%), from EUR 25 million to EUR 13.3 million [8]. - Reagent procurement costs reduced by EUR 2.8 million, from EUR 25.9 million to EUR 23.1 million [8]. - Fixed costs estimated to decrease by EUR 4.2 million, from EUR 10 million to EUR 5.8 million [8]. - Positive cost impact of up to EUR 6.3 million expected from reusing leach residues instead of disposal [8]. - Additional savings anticipated through maintenance and refined labor estimates, resulting in EUR 2.7 million in OpEx reduction [8]. Capital Expenditure (CapEx) Review - The company is conducting a review of capital expenditures (CapEx), with an updated financial model and profitability analysis to be published in the coming weeks [4]. Project Overview - The Guben Lithium Converter aims to produce 24,000 tonnes of battery-grade lithium hydroxide annually, sufficient to supply batteries for approximately 500,000 electric vehicles per year [6][10]. - The facility is strategically located near major automotive and battery manufacturing hubs, enhancing Europe's battery supply chain [9]. Strategic Importance - The Guben Converter is recognized as a strategic project under the EU's Critical Raw Materials Act, emphasizing Europe's commitment to securing essential materials for the energy transition [10][12]. - The project is expected to create approximately 200 jobs and contribute to regionalizing and decarbonizing the lithium supply chain in Europe [10].