- Rock Tech Lithium (RCK) has announced the results of an engineering study for the merchant lithium hydroxide converter and refinery facility
- The engineering study provides capital and operating cost estimates for the construction and operation of the converter
- The study estimates total initial capital costs of approximately €462 million for the implementation of the converter
- The results of the Converter Engineering Study support the company’s ongoing Front End Engineering Design (“FEED”) study of the converter
- Rock Tech Lithium is a cleantech company with operations in Canada and Germany that will supply the automotive industry with high-quality lithium hydroxide
- Rock Tech Lithium Inc. (RCK) is up 5.63 per cent, trading at C$7.13 per share at 10:30 am EST
Rock Tech Lithium (RCK) has announced the results of an engineering study for the merchant lithium hydroxide converter and refinery facility in Guben, Germany.
Highlights
- Estimated initial capital costs of approximately €462 million
- Estimated nameplate annual LMH production capacity of approximately 24,000 tonnes
- Estimated revenue of approximately €6,273 million over 20-year life of project
- Estimated After-Tax NPV of approximately €234 million
- Estimated After-Tax IRR of 14.5 per cent
Converter engineering study details
The engineering study was conducted by Wave International Pty and provides an economic evaluation, including capital and operating cost estimates, of the construction and operation of the converter. The results of the study are based on a single plant merchant converter designed to produce up to 24,000 tonnes of high purity battery-grade lithium hydroxide monohydrate (“LHM”) annually.
As announced on October 18, 2021, the company has recently completed a pilot test program that resulted in the successful production of high purity battery grade LHM, supporting the proposed process plant design of the converter. As a merchant converter, a robust flowsheet has been developed to handle a range of spodumene feed sources and, as such, relevant unit processes are included in the capital and operating cost estimates.
The results of the Converter Engineering Study support the company’s ongoing Front End Engineering Design (“FEED”) study of the converter on a Class 2 estimate basis.
The FEED study is expected to include the following activities:
- continuation of metallurgical testwork
- finalization of process flowsheet
- progression of discipline engineering to support improved accuracy of cost estimates
- major procurement activities including basic engineering design for major supply packages
- selection of major contractors and negotiation of material contract terms
- progression of approvals
The Converter Engineering Study estimates total initial capital costs of approximately €462 million for the implementation of the converter. Initial capital cost estimates were generated from preliminary design, vendor quotations and market data as of a base date of May 14, 2021.
Dirk Harbecke, Chief Executive Officer of Rock Tech Lithium, explains,
“We are pleased with the results of the Converter Engineering Study, which support our plans to build the first high-quality merchant battery-grade lithium hydroxide converter in Europe. A FEED study, supporting project financing, is underway and estimated for completion in the first half of 2022. In addition to selecting the site in Guben, we have commenced building our project execution team which is based in the Company’s offices in Ratingen, Germany. This team is responsible for finalizing and implementing the contracting and construction strategy to build and commission the converter commencing by the end of next year.”
Rock Tech Lithium is a cleantech company with operations in Canada and Germany that will supply the automotive industry with high-quality lithium hydroxide “made in Germany”.
Rock Tech Lithium Inc. (RCK) is up 5.63 per cent, trading at C$7.13 per share at 10:30 am EST.
