Rock Tech Lithium Announces Total Capital Costs of Approximately CAD$600 Million for Red Rock Converter based on Preliminary DFS Results

Rock Tech Lithium Inc. (RCK) announced preliminary results from the Definitive Feasibility Study (DFS) for its Red Rock Converter project in Ontario. The study, which commenced in June 2026, is expected to yield final results by the end of 2026. Engineering is being conducted by China CEC Engineering Corporation, working with established Canadian partners to localize the project.

The project is designed for an annual production capacity of approximately 30,000 tonnes of lithium salts. Total capital costs are estimated at approximately CAD$596 million, rounded to CAD$600 million, comprising CAD$546 million in direct capital costs and CAD$50 million in owner's costs, with a ±20% tolerance. Construction is currently targeted for the second half of 2027, subject to final DFS results and regulatory approvals.

The Red Rock Converter is part of the company's strategy to provide cost-competitive, sustainable lithium salts production in the Western world, complementing its permitted Guben converter in Germany.

Rock Tech Lithium Inc. (RCK) released a preliminary Definitive Feasibility Study (DFS) for the Red Rock Converter, establishing a concrete cost baseline that confirms the project's scale and validates the engineering approach initiated earlier in 2026. The study outlines a capital requirement of CAD$600 million, a figure that aligns with typical greenfield lithium conversion projects in North America. This amount represents a necessary step toward a Final Investment Decision (FID) rather than a surprise, consistent with expectations set by the April 2026 BMI Group anchor partnership and ongoing engineering work.

The preliminary DFS includes a ±20% tolerance, indicating that final costs could range between CAD$477 million and CAD$715 million. This variance highlights execution and inflation risks that will need to be managed during the final DFS and construction phases. The announcement serves as an incremental milestone, reinforcing the company's progress toward commercialization without altering the capital intensity profile previously communicated.

Rock Tech Lithium Inc. is a Canadian critical minerals company focused on building a vertically integrated, made-in-Ontario lithium supply chain. The company’s flagship projects include the Red Rock Converter in Ontario, Canada, a planned lithium conversion facility designed to produce up to 30,000-32,000 tonnes of lithium salts/LCE per year using proven German engineering and Siemens digital twin technology. Additionally, the company holds the Guben Converter in Germany, a fully permitted, shovel-ready lithium hydroxide converter with a capacity of 24,000 tonnes LHM per year that is recognized as a strategic project under the EU Critical Raw Materials Act. The Georgia Lake Mine, a wholly-owned spodumene project located approximately 60 km from the Red Rock Converter, is intended to supply raw material for the North American supply chain. The company aims to bridge mining and conversion, reducing reliance on offshore processing and aligning with IRA and CUSMA objectives for domestic battery material sovereignty.