Rock Tech Announces Estimated euros50 Million Reduction in Capital Expenditures for Guben Lithium Converter
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On October 23, 2025, Rock Tech Lithium announced an estimated €50 million reduction in the capital expenditures (CAPEX) for its Guben Lithium Converter project in Germany. The total estimated CAPEX has been revised downward from €730 million to €680 million, a reduction of approximately 6.9%. This news follows a previously announced 23% reduction in operating expenditures (OPEX) for the same project.
Concurrently, the company announced the signing of a non-binding Memorandum of Understanding (MoU) with Sichuan Calciner Technology (SCT). The potential partnership aims to leverage SCT's expertise in lithium processing for engineering and process optimization, particularly in the pyro-metallurgical area, which could lead to further cost savings.
This news is materially positive. The primary hurdle for Rock Tech is securing the massive financing package required to construct the Guben converter. By reducing the projected CAPEX by a significant €50 million, following a substantial OPEX reduction, the company has fundamentally improved the project's economic viability. As stated by management, these optimizations are "decisive factors" expected to "significantly improve our position" to complete the project financing.
The announcement directly addresses the key risk for investors. While this does not mean financing is secured, it makes the project substantially more attractive to potential debt and equity partners. The company is delivering on its promise from the September 17 news release, where it stated a CAPEX review was underway.
The MoU with Sichuan Calciner Technology, while non-binding, is also a positive development. It brings potential access to proven Chinese expertise in lithium processing, which could de-risk the construction and commissioning phases and may unlock further cost efficiencies. This adds a layer of technical credibility to the project.
However, the risk remains extremely high. The MoU is non-binding, and the company still needs to secure over €600 million. This news is a critical step forward, but it is not the final solution. The positive impact is contingent on the company leveraging these improved economics into definitive financing agreements.
Rock Tech Lithium is a German-Canadian development company aiming to build an integrated lithium supply chain for the European battery industry.
Its flagship asset is the Guben Lithium Converter project in Brandenburg, Germany. This is a planned lithium hydroxide refinery that is fully permitted and designed to produce 24,000 tonnes of battery-grade lithium hydroxide monohydrate (LHM) annually, enough to supply batteries for approximately 500,000 electric vehicles. The company is also advancing its Georgia Lake lithium project in Ontario, Canada, and has proposed a merger with Arcore AG to acquire the Lopare lithium project in Bosnia-Herzegovina as a potential future feedstock source.