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Rock Tech Lithium Inc issues update on outstanding German subsidy application. Subsidy applications will shift to state-level.

Toronto, ON

Rock Tech Lithium Inc issues update on outstanding German subsidy application. Subsidy applications will shift to state-level. Rock Tech will not receive funds from federal TCTF-subsidies programme. Instead, negotiations continue to finalize financing programmes with the state of Brandenburg.

The Federal Ministry for Economic Affairs and Climate Action (BMWK) has informed Rock Tech Lithium that it will not grant funding under the ‘Resilience and Sustainability of the Battery Cell Manufacturing Ecosystem’ (TCTF) program for the planned lithium refinery in Brandenburg. The reason being federal budget constraints. At the same time, the state of Brandenburg has promised its full support and is working hard to examine how the plant in Guben can be financially supported at state level. The applications for further federal funding, e.g. for governmental guarantees, are still open. Rock Tech regrets the federal ministry’s decision and is examining all available options going forward. Priority is being given to realising the plant with the support of the state of Brandenburg. The project is unique in Germany in terms of size, project maturity and strategic importance.

Dirk Harbecke, CEO & Chairman, comments: ‘The length of the TCTF application process and the associated lack of clarity has led to frustration among many involved parties. We are confident that the continuation of subsidy talks at state level can happen at an accelerated pace so that we can make a final investment decision as quickly as possible. Of course, we feel bound to Brandenburg and especially to the city of Guben and want to build our first lithium converter here. We are a key building block for the developing battery cluster in Brandenburg state. Minister President Woidke, Economics Minister Steinbach and Guben’s Mayor Mahro have supported us intensively and in partnership right from the start. We really appreciate that. However, at the same time, the international markets, especially North America and the Gulf States, are highly competitive when it comes to attracting future technologies.“

Rock Tech Lithium has achieved considerable project maturity in Guben.

Kerstin Wedemann, Chief Legal & Operations Officer, adds: „With receipt of the final permit in May, Rock Tech will hold the blueprint for the most modern lithium converter in Europe in its hands. The German permit to build and operate such a plant is of significant value. Few other countries apply such strict guidelines for technical and emissions approvals. This will mean that our concept is validated and can be transferred to other markets. This is already happening at our site in Canada, where we want to build Ontario’s first Lithium converter. We have already secured the first partnerships in Ontario, approval planning has begun and subsidy applications are underway there. “