Rock Tech Lithium Inc. and Ronbay Technology Co., Ltd. have entered into a strategic Memorandum of Understanding to develop a localized lithium-ion battery materials supply chain in Europe.

This partnership focuses on the long-term supply of battery-grade lithium hydroxide from Rock Tech to Ronbay's European cathode production sites.

The collaboration aims to meet the increasing demand for sustainable battery materials as Europe transitions to clean energy and electric mobility.

As part of this initiative, Ronbay will support the development of Rock Tech's Guben Converter in Germany, which is set to be Europe's first commercial lithium hydroxide refinery.

Rock Tech plans to construct this lithium plant in Guben, located near the German-Polish border, to produce lithium hydroxide for electric vehicle batteries.

The Guben Converter is expected to produce 24,000 tonnes of battery-grade lithium hydroxide annually, enough to supply over 500,000 electric vehicles each year.

Once financing, estimated at 800 million euros, is secured, construction of the factory will commence.

However, the construction timeline has faced delays, originally scheduled for early 2025, due to weaknesses in the electric vehicle market.

Ronbay's acquisition of a former Johnson Matthey plant in Konin, Poland, will enhance the localization of cathode material production and improve supply chain efficiency for electric vehicles.

Key initiatives within this partnership include market development and support for customer acquisition in the battery and automotive sectors, alongside potential joint investment opportunities.

Both companies are committed to negotiating binding agreements based on mutual support and technological synergy to foster a clean energy future.

This strategic move follows Rock Tech's earlier partnership with Mercedes-Benz, which included a supply agreement for lithium hydroxide sufficient for 150,000 electric vehicles.