Rock Tech Lithium has received a binding letter of intent (LOI) signed by the Ministry for Economic Affairs in Brandenburg, Germany for up to €90 million in subsidies for its Guben Lithium Converter Project. The company also expects to receive another €10 million in federal funding from the German Railway Authority to support the construction of train loading and unloading infrastructure.

Rock Tech plans to build and operate the refinery with a capacity of 24,000 tons of lithium hydroxide monohydrate per year. The project requires approximately €800 million in financing.

The subsidies will be paid out over the construction period as non-dilutive equity grants. The company is also in the process of applying for up to €400 million of federal guarantees to support its debt financing and expects to receive a decision by the end of 2024.

“These subsidies are a big step towards the realization of the Guben Converter. In addition to these substantial subsidies, we have signed a binding feedstock agreement with a leading lithium trading house, C&D Logistics Group, for the procurement of raw material for our converters and received the full construction and operations permit approvals for Guben,” Rock Tech’s CEO Dirk Harbecke said.

Source: Rock Tech Lithium