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Rock Tech forecasts C$2 billion of sales to Mercedes Benz

Kitco Media
By Michael McCrae
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Rock Tech Lithium (TSX-V: RCK) announced today it entered into a definitive supply agreement with Mercedes-Benz AG to supply the car maker with an average of 10,000 tonnes of battery-grade lithium hydroxide per year.

Rock Tech traded up 17% today to $3.40 a share on the news.

"Over a five-year term of the agreement and an initial ramp-up period, the agreement represents a roughly total estimated sales volume of approximately C$2 billion or €1.5 billion and over 40 percent of the expected annual production from Rock Tech's planned converter capacity in Guben, Germany," writes Rock Tech in its news release. "The estimated sales volume is based on moderate market forecasts and assessments."

Rock Tech is sourcing spodumene from its own site at Georgia Lake in Canada, as well as purchasing it from other mining sources that meet ESG standards. To refine the material the company is building high-tech converters in Germany.

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Michael McCrae

Michael McCrae is leading Kitco's coverage of the mining sector. McCrae, who has both an MBA and CMA, knows how to build digital media properties. He was co-founder and publisher of MINING.com, an award-winning news site. Before coming to media, McCrae worked in IT and banking. Please reach out: mmccrae@kitco.com or (514) 670-1383. You can also follow him at @michaelmccrae.

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