Rock Tech will sell by-products from its Guben Lithium production to Schwenk for use in cement manufacturing. This will generate additional annual profits, save up to EUR 8 million annually in operational costs, and increase the project's Net Present Value (NPV).
These by-products will replace traditional cement additives, significantly reducing CO₂ emissions in cement production and enhancing supply chain resilience.
Schwenk plans to invest in its facilities to process up to 200,000 tonnes of by-products annually by 2029, establishing a long-term partnership with Rock Tech.
TORONTO, Jan. 30, 2025 /CNW/ - Rock Tech Lithium Inc. (TSXV: RCK) (OTCQX: RCKTF) (FWB: RJIB) has signed a Memorandum of Understanding (MoU) with SCHWENK Zement GmbH & Co. KG (Schwenk), a leading German cement manufacturer, to use Lithium production by-products from Rock Tech's Guben Converter for use in Schwenk's cement manufacturing. This innovative partnership promises significant environmental and economic benefits by reducing carbon emissions and creating a new revenue stream. It is therefore fully in line with the German government's National Circular Economy Strategy, which was adopted in December. One of the strategy's objectives is to increase the use of industrial by-products in cement production.
Rock Tech and Schwenk Zement partner on zero-waste strategy. (CNW Group/Rock Tech Lithium Inc.)
"This partnership is a testament to our commitment to sustainability and formation of a circular economy." said Kerstin Wedemann, Chief Operations and Legal Office at Rock Tech. "By transforming waste into value, we enhance our profitability and support the cement industry's decarbonization efforts."
"Ensuring the future supply of sufficient quantities of high-quality cement grinding materials is of great strategic importance for Schwenk. The LSC (Leached Spodumene Concentrate) produced during the operation of the planned Converter in Guben represents an interesting and regionally available source of secondary raw materials." says Johann Trenkwalder, Member of the Management Board SCHWENK Germany
Environmental and Economic Benefits
The primary objective of the partnership is to develop industrial applications for residues generated from Rock Tech's Lithium-Hydroxide production, specifically leach residues. During initial studies conducted by the Institute of Technologies and Economics of Lithium (ITEL), the leach residues demonstrated potential as Supplementary Cementitious Materials (SCM) for use in cement manufacturing, offering the following benefits:
New Revenue Stream and Improved Economics: Rock Tech will sell its by-products to Schwenk, thereby creating an additional income stream. The parties have agreed on key commercial terms, including offtake pricing for the product.
Lower Carbon Emissions: Using the leach residues as SCMs in cement production significantly reduces CO₂ emissions for Schwenk and reduces dependency on other SCMs from coal-based-energy production, which will be less widely available in the future.
Cost Savings: Avoiding leach residue transportation and disposal lowers Rock Tech's annual operational expenditures by c. 7% and reduces the Guben Converter environmental impact.
Upon the successful ramp-up of Rock Techs' Guben Converter, Schwenk plans to invest into state-of-the-art facilities for drying, grinding, and storing leach residues from Lithium production. By 2029, Schwenk aims to use up to 200,000 tonnes of by-products annually, helping Rock Tech achieve its zero-waste goals.
A Sustainable Partnership
The agreement outlines that Schwenk eventually intends to offtake leach residues from Rock Tech's Guben Converter. During the initial ramp-up phase, flexibility is prioritized, including the option of temporarily utilizing residues in the high-temperature cement processes, if required. To facilitate the widespread adoption of this innovation, both parties will jointly pursue critical certifications, including REACH compliance and approvals from the German Institute for Construction Technology (DIBt). The certification process is expected to take up to 1.5 years. As part of the agreement, both parties agree to exclusive cooperation for the duration of the agreement.
ABOUT ROCK TECH
Rock Tech's vision is to supply the electric vehicle and battery industry with sustainable, locally produced Lithium, targeting a 100% recycling rate. To ensure resilient supply chains, the company plans to build Lithium converters at the doorstep of its customers, beginning with the Company's proposed Lithium-Hydroxide Converter in Guben, Brandenburg, Germany. The second Converter is planned to be built in Red Rock, Ontario, Canada. Rock Tech Lithium plans to source raw material from its own Georgia Lake spodumene project in the Thunder Bay Mining District of Ontario, Canada, and procure from other ESG-compliant mines. Ultimately, Rock Tech's goal is to create a closed-loop Lithium production system. Rock Tech has gathered one of the strongest teams in the industry to close the most pressing gap in the clean mobility story. The Company has adopted strict environmental, social and governance standards and is developing a proprietary refining process to increase efficiency and sustainability further.
ABOUT SCHWENK ZEMENT
Schwenk Zement is one of Germany's leading cement manufacturers and a pioneering force in the construction materials industry. Established in 1847, SCHWENK is among the oldest family-owned companies in the German construction sector. The company operates internationally, offering expertise across cement, concrete, sand, gravel, and pumping technologies. With a steadfast commitment to sustainable practices, SCHWENK invests significantly in cutting-edge research and green technologies to reduce its operations' environmental footprint. Its forward-looking approach ensures resource efficiency and innovation, making it a key player in driving sustainability within the global construction industry. Contact: Laura Schleicher: laura.schleicher@schwenk.com
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CAUTIONARY NOTE CONCERNING FORWARD-LOOKING INFORMATION Certain statements contained in this news release constitute "forward-looking information" under applicable securities laws and are referred to herein as "forward-looking statements". All statements, other than statements of historical fact, which address events, results, outcomes or developments that the Company expects to occur are forward-looking statements. When used in this news release, words such as "expects", "anticipates", "plans", "predicts", "believes", "estimates", "intends", "targets", "projects", "forecasts", "may", "will", "should", "would", "could" or negative versions thereof and other similar expressions are intended to identify forward-looking statements. In particular, this press release contains forward-looking information pertaining to expectations concerning the Guben Converter, including the design and features of the Guben Converter, as well as the expected costs, capital expenditures, timing and outcomes thereof; statements regarding the Company's future plans, estimates, and schedules relating to the Guben Converter, including the anticipated timing of future activities taken in support of the development thereof; Rock Tech's potential financing arrangements; the expected economic performance of the Guben Converter and anticipated production of battery-grade Lithium Hydroxide and related processing methods employed; the estimated capital and operating costs of the Guben Converter; the anticipated timing and outcomes of a final investment decision, construction activities and commissioning of the Guben Converter; statements regarding the Company's sustainability and ESG related goals and strategy, including the benefits and achievement thereof and future actions taken by the Company in relation thereto; expected regulatory processes and final outcomes; expectations regarding the electric vehicle industry, including the demand for and pricing of battery-grade Lithium Hydroxide and the benefits therefrom, and the development of political and regulatory frameworks especially in Germany and the European Union; Rock Tech's opinions, beliefs and expectations regarding the Company's business strategy, development and exploration opportunities and projects; and plans and objectives of management for the Company's operations and properties. Forward-looking statements by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from the forward-looking statements, including the risks, uncertainties and other factors discussed in the Company's most recent management's discussion and analysis and annual information form filed with the applicable securities regulators. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, and the Company cautions the reader not to place undue reliance upon any such forward-looking statements. The Company does not intend, nor does it assume any obligation to update or revise any of the forward-looking statements, whether as a result of new information, changes in assumptions, future events or otherwise, except to the extent required by applicable law.
