- Rock Tech Lithium (RCK) has signed a supply agreement with Mercedes Benz AG
- The company will provide an average of 10,000 tonnes of battery-grade lithium hydroxide per year for the production of electric vehicles
- The agreement represents estimated revenue of C$2 billion over a five-year term
- Rock Tech is a cleantech company focused on producing lithium hydroxide for EV batteries
- Rock Tech Lithium (RCK) is up by 16.55 per cent, trading at $3.38 per share
Rock Tech Lithium (RCK) has signed a supply agreement with Mercedes Benz AG.
The company will provide an average of 10,000 tonnes of battery-grade lithium hydroxide per year for the production of electric vehicles. The annual volume will be sufficient to equip 150,000 Mercedes-Benz vehicles and represents 40 per cent of expected annual production from Rock Tech’s planned converter capacity in Guben, Germany.
The agreement will provide Rock Tech with estimated revenue of C$2 billion over a five-year term.
The term will be preceded by a qualification period in 2026 in which quality and sustainability benchmarks have to be met.
The agreement includes the creation of a roadmap to achieve CO2-neutral production by the end of 2030. All lithium hydroxide must also be sourced from mining sites audited by the Initiative for Responsible Mining Assurances.
“I am honoured that Mercedes Benz demonstrates trust in Rock Tech as a new but reliable player in a diversified European battery supply chain,” stated Markus Bruegmann, Rock Tech’s CEO. “This arrangement is a major step forward in our plans to directly contribute to clean mobility.”
“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,” added Markus Schäfer, Mercedes’ CTO.
Rock Tech is a cleantech company focused on producing lithium hydroxide for EV batteries.
Rock Tech Lithium (RCK) is up by 16.55 per cent, trading at $3.38 per share as of 9:38 am EST.
