Rock Tech Lithium Inc. is excited to announce it has received a binding letter of intent (LOI) from Joerg Steinbach, Minister for Economic Affairs in Brandenburg, for up to €90 million in subsidies for the Guben Project. Additionally, the company’s application for federal funding from the German Railway Authority is advancing well and is anticipated to result in an additional €10 million in grants. This funding, provided under the "Anschlussbahnförderung," will support Rock Tech's goal of shifting transportation from road to rail, a key element of the project's logistics strategy.

Rock Tech’s CEO Dirk Harbecke remarks, "These subsidies mark a significant milestone for us and a crucial step towards realizing the Guben Converter. Along with potential federal guarantees, we are aiming for government financial support of up to €500 millionFurthermore, alongside these significant subsidies, we have finalized a binding agreement with the leading lithium trading firm C&D Logistics Group for sourcing raw materials for our converters. Additionally, we have obtained all necessary permits for the construction and operation of the Guben facility. I am very confident we will finalize the remaining financing steps for Guben in the coming months."

The LOI confirms that after thorough vetting by the Investitionsbank des Landes Brandenburg (ILB), the state will grant funding to Rock Tech, provided the Company secures full financing for the Guben project. The subsidies will be part of the GRW funding scheme under the federal "Transformation Technologies" regulation. This highlights the importance of Rock Tech’s project for Germany and the battery cluster in Brandenburg. The grant notice is anticipated to be signed and finalized in the fourth quarter, with subsidies disbursed throughout the construction phase. Additionally, Rock Tech is progressing its application for a federal guarantee to cover 80% of debt financing, with a decision anticipated in 2024.

Kerstin Wedemann, Chief Legal & Operations Officer, comments, "With the favorable subsidy decision, we anticipate making substantial progress in the months ahead." Alongside finalizing our debt and equity discussions, we will announce our construction partner, start ramping up our team, and initiate construction."

Rock Tech plans to establish and operate Europe’s first Lithium Converter with an annual capacity of 24,000 tonnes of Lithium-Hydroxide-Monohydrate. The refinery, to be constructed in Guben, Germany, will require an investment of around 800 million Euros.

Rock Tech strives to supply the battery industry with sustainable lithium produced locally, aiming for a 100% recycling rate to ensure robust and self-reliant supply chains. The company is investing in its fully-owned upstream mining project, Georgia Lake, in Canada, and in high-tech lithium refineries, or "Converters," in North America and EMEA. By producing battery-grade lithium close to customers, Rock Tech ensures supply chain transparency and just-in-time delivery. The Guben Converter in Brandenburg, Germany, is expected to begin production by the end of 2026. The second refinery, Red Rock Converter, will be developed in Ontario, Canada, with production anticipated in 2028.