Rock Tech struggles with financing for lithium converter in Guben

The biggest challenge in constructing the planned lithium converter in Guben is the expected investment cost of €750 million. According to a summary statements made by company representatives during a city council assembly, Rock Tech lacks private investors – and therefore, a key prerequisite for securing public funds. While the company still expects the plant to be built, its representatives could not provide a reliable timeline for when construction might begin. The build itself is expected to take approximately two and a half years.

Rock Tech Lithium’s difficulty in raising such a large sum is likely due to its status as a startup. Although the company is listed on the stock exchange, it has yet to generate significant revenue. This is because the lithium converter in Guben – along with a similarly planned project in Canada – would represent the company’s first industrial-scale facility. Another challenge is the uncertain outlook for the ramp-up of electromobility in Europe, as the lithium hydroxide produced at the Guben plant is intended for high-voltage batteries used in electric vehicles.

In its most recent quarterly report, Rock Tech Lithium stated that it continues to engage in discussions with potential lenders regarding project financing. The primary focus is on reaching a Final Investment Decision. This includes advancing financing talks, updating the FEL3 study, and finalising detailed planning and procurement preparations.

The Guben converter is designed to produce 24,000 tonnes of battery-grade lithium hydroxide annually, making it the largest facility of its kind in Europe. Production was originally scheduled to begin in 2027, but a more realistic timeline now suggests it may not start until 2029 at the earliest. The targeted production volume is sufficient for around 30GWh of battery capacity or approximately 500,000 EVs per year. While management works to secure project financing, recent efforts have also focused on refining the production method and reducing expected operating costs. A construction and operating permit for the lithium converter in Guben has already been in place for some time.

rbb24.de (DE), rocktechlithium.com (Quarterly Report)