Rock Tech Announces Estimated €50 Million Reduction in Capital Expenditures for Guben Lithium Converter

Rock Tech Announces Estimated €50 Million Reduction in Capital Expenditures for Guben Lithium Converter

• Targeted optimizations are expected to reduce the estimated total capital expenditures (“CapEx”) for the lithium refinery converter in Guben, Brandenburg (the “Guben Lithium Converter” or the “Project”), from €730 million to €680 million.¹
• Together with the modeled 23% reduction in operating expenditures (“OpEx”) disclosed on September 17, 2025 (the “OpEx News Release”), management believes the CapEx and OpEx reductions will enhance the Project’s international competitiveness and improve its financing readiness.
• Rock Tech has signed a non-binding memorandum of understanding (the “MoU”) with Sichuan Calciner Technology (“SCT”) regarding potential engineering collaboration.
• Rock Tech provides update on Arcore AG Merger.

TORONTO, Oct. 23, 2025 /PRNewswire/ – Rock Tech Lithium Inc. (TSXV: RCK) (OTCQX: RCKTF) (FWB: RJIB) (WKN: A1XF0V) (the “Company” or “Rock Tech”) is pleased to announce, further to the OpEx News Release, another significant milestone in the development of the fully permitted Guben Lithium Converter on the German-Polish border. Following a comprehensive design and procurement review, management now estimates the CapEx for commissioning the facility at approximately €680 million, compared to the prior estimate of €730 million, representing a net reduction of approximately €50 million (approximately 6.9%). Together with the previously announced modelled OpEx reductions of approximately 23%, management believes these changes will improve the Project’s competitiveness, positioning Rock Tech as an internationally competitive player in lithium refining and improving the financing basis for the strategic EU raw materials project.

Henrik Wende, Managing Director of Rock Tech Guben GmbH, explains:

The combination of modelled operating cost reductions and estimated capital cost savings will fundamentally change the business case for Guben,

“With potential production costs that position us competitively in the international market and simultaneously reduced investment expenditures, we would increase the economic viability of the project. To complete the financing of the Project, these optimizations are decisive factors that we expect to significantly improve our position.”

Estimated CapEx Reduction Through Targeted Optimizations

The estimated cost reduction is the result of a comprehensive review of all project components and targeted adjustments in several areas:

• Optimized Plant Design: Through targeted adjustments in various areas, such as packaging systems, facade elements, the emission measurements, truck scales, or parts of the piping construction, the Company expects to save approximately €22 million, reducing the original estimate of €62 million to approximately €40 million.
• Adjusted Storage Capacities: On-site storage for raw materials, reagents (chemical auxiliaries), and residual materials is expected to be reduced in line with the new logistics concept. Costs in this category are expected to decrease from €35 million to €28 million – a saving of €7 million.
• Process Optimizations: Through changes in process technology that are compatible with permit requirements – for example, for intermediate buffers or individual process stages – the Company expects to save an additional €14 million, reducing the original estimate of €88 million to €74 million.
• Updated Supplier Estimates: Through revised procurement requirements with suppliers and the expansion of procurement sources, potential savings of around €16 million have been identified, reducing the original estimate of €597 million to €581 million.
• Contingency: Additionally, expenses for contingencies were adjusted from €60 million to €57 million – a further estimated saving of €3 million.

These gross savings of approximately €62 million are partially offset by an estimated €12 million of increased costs in other categories including owner’s costs (costs which are necessary to make the plant operational) resulting in a net estimated reduction of €50 million.

Further Optimizations Planned – Competitiveness Sustainably Strengthened

The “Owner’s Costs” – expenses for establishing the operational readiness of the facility – and other external costs are currently the focus of further optimization. Rock Tech expects additional savings potential in these areas by optimized plant design. Furthermore, Rock Tech expects additional saving opportunities upon Project implementation with an external solutions provider and EPCM² partner, Worley, detailed engineering and optimization of the sourcing strategy.

As noted in the OpEx News Release, Rock Tech modelled a 23% reduction in OpEx – reduction from approximately €5,033 to €3,878 euros per tonne of lithium hydroxide. Production costs are therefore expected to decrease significantly, which is expected to strengthen the international competitiveness of the Guben converter.

Non-Binding MoU with Sichuan Calciner Technology

In connection with the CapEx optimization program, Rock Tech has signed a non-binding MoU with SCT for a potential collaboration on engineering and process optimization for the Guben Lithium Converter.³

The MoU was signed during a high-level business delegation visit to Berlin which included representatives from Sichuan province, CAO Lijun, Member of the Standing Committee of the Sichuan Provincial Party Committee, and Party Secretary of the Chengdu Municipal Party Committee. Chengdu is considered the center of advanced battery production. The delegation met with selected representatives of the German industry, including, amongst others and Rock Tech, Danone Germany, Dreame Technology, Deutsche Messe AG, and the Chinese Chamber of Commerce in Germany.

SCT is a globally recognized engineering expert in the field of lithium refining plants and a founding member of the International Lithium Association. The company operates as a service provider for technologies and plants for cathode materials and has realized many operational production lines for lithium battery materials in China. SCT is specialized in providing engineering design, process technology, procurement, construction and commissioning services. SCT has designed and built over 60 lithium convertor trains of lithium carbonate and lithium hydroxide globally and developed proven proprietary process technology, know-how and equipment

Mirco Wojnarowicz, CEO of Rock Tech, explains:

Should the partnership advance on mutually agreeable terms, the Company will gain access to SCT’s comprehensive expertise in lithium processing,

“This potential cooperation could support us in efficiently advancing our project in Guben and benefiting from proven processes. Particularly in the pyro-metallurgical area, we see further potential for optimizing our investment costs through collaboration with SCT in the area of plant design and sourcing.”

SCT’s CEO Jeremy Chang, says:

We are delighted to be working with the experienced team from Rock Tech and be able to bring value to the project.

“SCT can bring expertise and experience in the industry to improve the safety, reliability, and economics of the plant. This collaboration reflects the growing global momentum in decarbonization and electrification and could help establish battery and electric vehicles industry in Germany.”

Update on Merger with Arcore AG

Further to the Company’s news releases dated July 7 and February 20, 2025, Rock Tech intends to cease its activities in Bosnia and Herzegovina and has terminated the previously contemplated joint venture with Arcore for the extraction of lithium-bearing ore, in order to prioritize capital and management attention on the Guben Lithium Converter, the Company’s core project, and other related strategic initiatives.

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Rock Tech Announces Estimated €50 Million Reduction in Capital Expenditures for Guben Lithium Converter, source