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Rock Tech concludes C$2bn deal with Mercedes-Benz

Vancouver, Canada

Rock Tech has entered into a definitive supply agreement with Mercedes-Benz AG. In furtherance of the strategic partnership announced in August, the parties have agreed on the supply of an avergae of 10,000 tonnes of battery-grade lithium hydroxide per year. Over a five-year term of the agreement and n initial a ramp-up period, the agreement represents a roughly total estimated sales volume of approximately C$2 billion or €1.5 billion and over 40 percent of the expected annual production from the planned converter capacity in Guben, Germany.

The Supply Agreement provides for a five-year term, commencing with a preceded qualification period in 2026. Afterwards, it is anticipated that Rock Tech will deliver an average of 10,000 tonnes of refined lithium hydroxide to Mercedes-Benz’ supply chain annually under the Supply Agreement from Rock Tech’s first lithium converter in Germany.

“Signing the Supply Agreement marks a significant milestone of our offtake strategy, and I am honored that Mercedes-Benz demonstrates trust in Rock Tech as a new but reliable player in a diversified European battery supply chain,” commented Rock Tech’s Chief Executive Officer at the signing event in Sindelfingen, Germany, “we are well aware of the significance of this relationship to both parties. We intend to focus our efforts on providing lithium hydroxide that will help to bring Mercedes-Benz’ electric mobility ambitions into action. This arrangement is a major step forward in our plans to directly contribute to clean mobility.“

“This significant amount of lithium sourced directly from Rock Tech will help Mercedes-Benz to advance localization of European production of state-of-the art battery cells. The on average 10,000 tonnes of lithium hydroxide per annum will play a key role in securing the lithium supply for our battery production in Europe, to help achieve our ambitious electrification goals”, said Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, responsible for Research & Development and Procurement.

Pursuant to the agreement, Rock Tech is expected to supply Mercedes-Benz supply chain with high-quality lithium hydroxide needed to rapidly scale up production of electric vehicles, and to equip approximately 150,000 Mercedes-Benz electric cars with premium high-performance batteries.

EV mobility is a key goal in achieving carbon neutrality, an objective shared by both companies, including Rock Tech’s converter production. In support of this objective, the Supply Agreement provides that the parties will cooperate in creating a roadmap to achieving CO2 neutral production of lithium hydroxide by the end of 2030. Additionally, it also requires that all lithium hydroxide supplied by Rock Tech shall be sourced from mining sites audited by the Initiative for Responsible Mining Assurances („IRMA“).