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Final Engineering Study and Deutsche Bank Mandated for Guben Converter

Guben, Germany

Rock Tech has reached a significant milestone in the preparation of construction of its lithium hydroxide converter in Guben, Germany: The Front-End Loading stage 3 study, or FEL3 has been published.

Profitability, one of the key results, has been estimated to a post-tax NPV (8%) of 1,194 million Euros, which is an increase of 43 percent compared to the previous Bankable Project Study. In particular, the increased long-term price assumptions of analysts lead to higher margin calculations.


• Estimated post-tax NPV (8% discount rate) of EUR 1,194m (USD 1,246m).

• Estimated post-tax IRR of 22.3%.

• Estimated annual EBITDA of EUR 293m (USD 305m); after-tax annual cash flow of EUR 188m (USD 199m).

• Estimated average battery-grade lithium hydroxide (LHM) prices of 31,771 USD/t, and average. SC6 prices of 1,966 USD/t.

• Estimated initial capital costs of EUR 730m (USD 762m); payback of 3.6 years after start of production.

• Preparation for construction has commenced, start of battery-grade LHM production planned for Q1’2026.

• Deutsche Bank mandated as placement agent for Converter equity financing.

It will be the last basic engineering study and prepares the project to move to construction phase including final procurement negotiations and detailed engineering design. The study includes detailed specifications for construction, commissioning, start-up, and operation, along with a purchase-ready major equipment cost estimates.

The FEL3 results in a much more accurate cost estimate with a variance of only +/-10% (AACE Class 2) and is based on existing definite offers of mainly European suppliers and service providers supporting purchase-ready major equipment cost estimates. Despite this enhanced accuracy, it can be clearly noted that the planning of capital expenditures remains stable and only increases by 4%, mainly due to inflation.

A competitive tendering process has been kicked off, with the assistance of an independent expert, to appoint an Engineering, Procurement and Construction Management (EPCM) partner for project execution. Rock Tech has also selected Deutsche Bank AG as a highly experienced placement agent, with a proven track record in major equity financings, for the Company’s Converter-related financing.

“We are very pleased to have partnered with Deutsche Bank, a leading global investment bank, to lead our equity raising and partnership activities for the Converter financing. The completion of our latest detailed engineering study further substantiates the profitability and attractiveness of our project, and we are confident the next months will yield strong financing partnerships.”

Sonja Rossteuscher
Rock Tech’s Chief Financial Officer