Rock Tech provides an Update on its Business Activities
Rock Tech Lithium Inc.
600-777 Hornby Street | Vancouver | British Columbia | Canada | V6Z 1S4
P. +1.778.358.5200 | F. +1.604.670.0033
www.rocktechlithium.com | [email protected]
TSXV: RCK | Frankfurt: RJIB
Rock Tech provides an Update on its Business Activities
Vancouver, BC, Canada – July 23, 2020 – Rock Tech Lithium Inc. (the "Company" or “Rock
Tech”) (TSX -V: RCK; Frankfurt: RJIB ) is pleased to provide a general update on its business
activities and future plans.
Rock Tech’s Business Focus
With the forecasted growth in battery cell production it is Rock Tech’s view that there will be a
substantial demand increase for lithium in the upcoming years . It will significantly outpa ce
available supply capacities as producers and developer s will not be able t o react quickly enough
after several years of depressed markets have caused them to suspend their expansion and
exploration activities. Therefore, rising spodumene prices are very likely once this supply gap
becomes apparent to the market and prices are expected to remain high for several years.
It is therefore our clear intention to bring the Georgia Lake spodumene project into production to
benefit from the expected market trend.
What has been overlooked by many market participants is a looming shortage of lithium
conversion capacity for lithium hydroxide, a precursor for high quality battery cells. We think that
this shortage will even be more pronounced than the one for spodumene and will put the western
car manufacturers in quite an uncomfortable supply dependency on an oligopoly , mainly
dominated by Chinese firms.
Right now, almost the entire planet’s lithium hydroxide conversion capacity is in China. There are
only two converters with meaningful capacity under construction outside of China, Kwinana and
Kemerton which are both located in Australia. However, they are owned by the Chinese firm
Tianqi (Kwinana) and American company Albemarle (Kemerton), two dominating market players
with a strong negotiation position against their offtakers.
Despite being two of the most important car manufacturing regions in the world, there is no single
producing converter in North America or Europe. Rock Tech has therefore decided to fill this gap
by pursuing a path of setting up conversion capacity under its own control and becom ing a
sustainable, non-Chinese source of lithium hydroxide for the western battery producers . This is a
unique opportunity to generate high margins in a strongly growing market.
“Going forward Rock Tech will pursue the converter project in parallel with the development of
Georgia Lake. For this project we will shortly commence trade-off studies to determine the ideal
plant location and setup. Depending on the study outcome and the planned pre-feasibility work we
will amend Rock Tech’s team to appropriately reflect the required skill set for this task ,” says
Simon Bodensteiner, CEO of Rock Tech Lithium.
Rock Tech Lithium Inc.
600-777 Hornby Street | Vancouver | British Columbia | Canada | V6Z 1S4
P. +1.778.358.5200 | F. +1.604.670.0033
www.rocktechlithium.com | [email protected]
TSXV: RCK | Frankfurt: RJIB
Georgia Lake
The project in Northwest Ontario will play an integral role in providing feedstock to the envisaged
converter. It is intended that around half of the spodumene will come from Georgia Lake. Rock
Tech remains committed to carry out all necessary work to advance the project towards Pre -
Feasibility level, followed by a Feasibility Study with a production decision.
Over the coming months we will continue our baseline studies (e.g. fisheries assessment, ground
water and surface water monitoring, geochemical rock characterization, etc.) which will be
essential for the permitting process.
In addition, we anticipate commencing the formal permitting process before year end. Since the
planned daily production capacity will be below 5,000 tonnes, an impact assessment may not be
required under the federal Impact Assessment Act which will significantly shorten and simplify
the permitting process.
Further, Rock Tech will step up its metallurgical testwork programme on the Main Zone orebody
of the Georgia Lake deposit with the aim to increase the confidence level of the PEA assumptions,
optimize the flowsheet and identify efficiency gains and cost saving opportunities.
Lithium Hydroxide Converter
The envisaged annual output of the converter is 24,000 tonnes of lithium hydroxide-monohydrate.
This plant size is comparable to most existing converters and presents technically the upper limit
of some key plant components. It therefore combines the largest industry-proven technology with
the lowest cost on a per-unit basis due to its economies of scale.
Approximately 50% of the required spodumene feedstock could be supplied from Georgia Lake
with the remaining balance to be sourced from third parties to diversify and lower supply risks .
Rock Tech intends to take advantage of the current low-cost environment to secure attractive
supply contracts whilst considering Georgia Lake as a secure source of feedstock.
One of Rock Tech’s main competitive advantages , apart from the Georgia Lake deposit , is the
superior access to the German investor community, automo tive industry and political decision
makers. We are assessing different locations for the envisaged chemical plant which will convert
spodumene concentrate into lithium hydroxide. Whilst a fully integrated plant in the vicinity of
Georgia Lake (e.g. Thunder Bay) may be technically the most favorable option, factors such as
subsidies and the proximity to offtakers may make a plant location in Europe more attractive. It
may further be possible to produce a precursor material in North America an d complete the final
refining step in Europe.
Rock Tech Lithium Inc.
600-777 Hornby Street | Vancouver | British Columbia | Canada | V6Z 1S4
P. +1.778.358.5200 | F. +1.604.670.0033
www.rocktechlithium.com | [email protected]
TSXV: RCK | Frankfurt: RJIB
Rock Tech will start a Trade-Off study in due course to determine the most favorable plant location
as well as configuration and assess its associated risks and opportunities. This work is anticipated
to be complete within the quarter so that a Pre-Feasibility Study can commence immediately
following the Board decision on the preferred option. The Pre-Feasibility Study is likely going to
take nine months.
With the broadened company focus, Rock Tech intends to strengthen its advisory and management
team to adequately address the need for additional skill sets in the area of chemical plant design as
well as study and project management. We intend to take advantage of the currently depressed
market condition in order to attract high-caliber personnel.
On behalf of the Board of Directors,
"Simon Bodensteiner"
Simon Bodensteiner
Director, Chief Executive Officer
For further information, please contact:
Brad Barnett
Chief Financial Officer
Rock Tech Lithium Inc.
777 Hornby Street, Suite 600
Vancouver, B.C., V6Z 1S4
Telephone: (778) 358-5200
Facsimile: (604) 670-0033
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not
historical in nature are intended to be, and are hereby identified as, "forward ‐looking statements". Forward‐looking statements
may be identified by words including "anticipates", "believes", "intends", "estimate s", "expects" and similar expressions. The
Company cautions readers that forward ‐looking statements, including without limitation those relating to the Company's future
operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially
from those indicated in the forward‐looking statements.