Rock Tech Lithium (TSXV: RCK; OTCQX: RCKTF) is partnering with 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. To ensure resilient supply chains, the company plans to build lithium converters at the doorstep of its customers, beginning with its proposed lithium-hydroxide converter in Guben, Brandenburg, Germany.
The parties believe the partnership will have significant environmental and economic benefits by reducing carbon emissions and creating a new revenue stream.
Kerstin Wedemann, an executive at Rock Tech, said. "This partnership is a testament to our commitment to sustainability and formation of a circular economy. By transforming waste into value, we enhance our profitability and support the cement industry's decarbonization efforts."
Johann Trenkwalder, member of the management board for Schwenk Germany, commented. "Ensuring the future supply of sufficient quantities of high-quality cement grinding materials is of great strategic importance for Schwenk. The leached spodumene concentrate produced during the operation of the planned converter in Guben represents an interesting and regionally available source of secondary raw materials.”
The primary objective of the partnership is to develop industrial applications for residues generated from Rock Tech's lithium-hydroxide production, specifically leach residues. The Institute of Technologies and Economics of Lithium (ITEL) conducted early studies and determined the leach residues had 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 around 7% and reduces the Guben converter environmental impact.
Schwenk plans to invest into state-of-the-art facilities for drying, grinding, and storing leach residues from lithium production. The company will invest upon successful ramp-up of Rock Techs' Guben converter. By 2029, Schwenk aims to use up to 200,000 tons of by-
The agreement outlines that Schwenk eventually will offtake leach residues from Rock Tech's Guben converter. During the initial ramp-up phase, company workers will prioritize flexibility, including the option of temporarily utilizing residues in the high-temperature cement processes.
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.
The second Converter is planned to be built in Red Rock, Ontario. Rock Tech Lithium plans to source raw material from its own Georgia Lake spodumene project in the Thunder Bay mining district. Ultimately, Rock Tech's goal is to create a closed-loop lithium production system.
Schwenk Zement is one of Germany's leading cement manufacturers and a known force in the construction materials industry. The company operates internationally, offering expertise across cement, concrete, sand, gravel, and pumping technologies.
More information is posted on www.RockTechLithium.com.
January 30, 2025
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