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CANADA/GERMANY, 26 October 2022: Rock Tech and Transamine are forming a joint venture called “RTT Lithium SA”.
It is anticipated that RTT would be founded by the end of 2022 and will be a 50/50 joint venture with a headquarters in Geneva, Switzerland.
New transportation route
For the Company’s upcoming European lithium converters, RTT must locate, pursue, and secure the supply of lithium-bearing spodumene as well as build a new route for its transportation.
RTT anticipates that by giving feedstock to Rock Tech, which plans to deliver lithium to clients in the European car industry, it will be able to offer spodumene producers a solitary dependable and transparent off-take option.
Long-term feedstock supply agreements that RTT and Rock Tech will enter into will control future deliveries of spodumene concentrate by RTT to Rock Tech.
Rock Tech closes deal with Mercedes-Benz
A transaction of USD 1.5bn was signed by Rock Tech and Mercedes-Benz AG last week. With latter, the former has a firm supply arrangement.
The parties have settled on a supply of an average of 10,000 tonnes of battery-grade lithium hydroxide annually as part of the strategic collaboration established in August.
The arrangement covers more than 40 percent of the anticipated yearly production from the planned converter capacity in Guben, Germany, over a five-year term of the agreement and an initial ramp-up period, with an estimated total estimated sales volume of nearly USD 1.5bn.
The Supply Agreement stipulates a five-year duration, beginning in 2026 after a preliminary qualification phase. After that, according to the Supply Agreement, Rock Tech will supply Mercedes-Benz’s chain with an average of 10,000 tonnes of refined lithium hydroxide each year from its first lithium converter in Germany.
Comments
Markus Bruegmann, the Company’s Chief Executive Officer said, “RTT is expected to provide Rock Tech with the capacity to secure a deep pipeline of potential raw material sources and is an important step in advancing the Company’s diversified sourcing strategy.”
“Transamine is a partner with 70 years of expertise in the global non-ferrous raw materials trading space and has the liquidity and access to financing necessary for potential purchase financing,” Bruegmann added.
“We intend to create a new and reliable solution for spodumene concentrate producers to, via Rock Tech, supply the European lithium market as part of a supply chain that is transparent, traceable and ESG compliant, from mines to the off-take market. This will also help us to grow in a strategic market of critical raw materials,” said Jean-Pierre Adamian, Director of Transamine.
