Rock Tech Lithium Projects 23% Reduction in Operating Costs for Guben Converter

• Rock Tech's updated OpEx model projects a 23% reduction in operating costs for its Guben Converter, cutting lithium hydroxide production expenses from approx. EUR 5,033 to EUR 3,878 per ton.
• Based on the updated model, the Company is enhancing its competitiveness in volatile markets.

TORONTO, Sept. 17, 2025 /CNW/ - Rock Tech Lithium Inc. (TSX-V: RCK) (OTCQX: RCKTF) (FWB: RJIB) (WKN: A1XF0V) (the "Company" or "Rock Tech") is pleased to announce a significant milestone in the development of its Guben Lithium Converter. Following a comprehensive update to its operational expenditure (OpEx) model, the Company anticipates a reduction of approximately 23% in the modeled cost of producing lithium hydroxide – from approximately EUR 5,033 per ton to EUR 3,878 per ton (based on an annual output target of 24,000 tons of lithium hydroxide). This equates to an annual project OpEx reduction of approximately EUR 27.7 million, from EUR 120.8 million to EUR 93.1 million.

The modeled reduction reflects a combination of updated cost inputs across several key areas.

• Transport and Logistics: Transport and logistics expenses are projected to decline by EUR 11.7 million (47%), from EUR 25 million to EUR 13.3 million following the adoption of a revised logistics concept, which accounts for 42.2% of the total projected decrease in OpEx. The most significant component of this decrease stems from an updated spodumene supply contract with more favorable Incoterms, reducing shipping obligations and expected logistics costs by EUR 10.4 million.
• Reagent Procurement: Revised supplier offers reduce reagent procurement costs by EUR 2.8 million, from EUR 25.9 million to EUR 23.1 million, contributing approximately 10.1% of the total projected savings.
• Fixed Costs: Refined estimates of annual fees, office expenses, insurance coverage and IT costs are projected to decrease by EUR 4.2 million, from EUR 10 million to EUR 5.8 million, accounting for approximately 15.2 % of total OpEx savings.
• Leach Residue Reuse: The Company expects a positive cost impact of up to EUR 6.3 million by reusing leach residues instead of disposing of them, under a memorandum of understanding with Schwenk Zement GmbH & Co KG, a well-known German company in the cement industry. This initiative contributes approximately 22.7% of the total OpEx reduction. The companies intend to finalize binding offtake agreements for the leach residues in due course.
• Additional Savings: In addition, the Company expects to further reduce its costs through maintenance savings and refined labor estimates, resulting in an additional EUR 2.7 million in project OpEx reduction.

Increased energy costs are expected to be mitigated by a sustainable long-term energy supply agreement currently under negotiation with Enertrag SE.¹ This cost improvement positions Rock Tech as an internationally competitive player in the lithium-refining market.

"This significant cost reduction is a major step forward," says Mirco Wojnarowicz, CEO of Rock Tech. "In today's volatile market, establishing a lean and competitive project is not just beneficial—it's essential. For our equity and debt financing partners, OpEx is one of the most critical benchmarks for project viability. By reducing our modeled costs by 23%, we are not only improving competitiveness but also significantly strengthening the financing case for Guben."

The Company is also conducting a parallel review of capital expenditures (CapEx). An updated financial model and full profitability analysis will be published once the review is complete in the coming weeks.

Rock Tech remains committed to building one of Europe's first lithium hydroxide converters, supporting the transition to sustainable mobility with reliable, local supply of critical battery materials.

About the Guben Converter

The Guben Lithium Converter is a pioneering facility in Guben, Brandenburg, Germany, by the German-Canadian company Rock Tech Lithium Inc. This plant is set to become Europe's first commercial lithium hydroxide refinery aiming to produce 24,000 tonnes of battery grade lithium hydroxide annually (equivalent to approximately 30 GWh of battery capacity) – enough, based on an average consumption of 0.8kg per kWh and 60 kWh per EV, to supply batteries for approximately 500,000 electric vehicles per year.² 

Strategically located near major automotive and battery manufacturing hubs the Guben Converter is designed to strengthen Europe's battery supply chain by processing spodumene concentrate secured via leading trading partner C&D Logistics (Qingdao) Co., Ltd. The Converter will utilize advanced crystallization technologies, supplied by GEA Group AG, to ensure high-purity lithium production with minimal environmental impact. The leading international engineering firm Worley Ltd. has been selected as construction partner (EPCM) for the plant.

Recognized as a strategic project under the EU's Critical Raw Materials Act³, the Guben Converter underscores Europe's commitment to securing essential materials for the energy transition. The project is expected to create approximately 200 jobs and represents a significant step toward regionalizing and decarbonizing the lithium supply chain in Europe.

On behalf of the Management

Mirco Wojnarowicz
CEO, Rock Tech Lithium Inc.

ABOUT ROCK TECH

Rock Tech is enabling the battery age by making the battery industries in Europe and North America more independent and competitive. The Company's goal is to ensure the supply of high-quality, locally produced lithium – supporting a resilient, sustainable, and transparent value chain from mine to battery-grade material.

Rock Tech relies on responsible sourcing, state-of-the-art and proven technologies, and a clear focus on circular economy principles. The Company's lithium hydroxide converter projects in Guben, Germany (24,000 tonnes LHM per year) and Ontario, Canada (up to 36,000 tonnes LCE per year) form the foundation for a stable and regional supply to the battery and automotive industries. The Guben converter has been recognized as a strategic project under the EU Critical Raw Materials Act.

The raw materials for Rock Tech's converter projects are sourced exclusively from verifiably ESG-compliant suppliers. In Canada, Rock Tech relies, among other sources, on its wholly owned Georgia Lake Project, which ensures a stable and sustainable supply for the North American market and is being developed in close partnership with local First Nations communities. By integrating recycled materials, the company aims to close the local battery loop.

With its facilities, Rock Tech makes a central contribution to battery-grade material sovereignty and the achievement of climate targets. The company works in partnership with industry, policymakers, and community groups, and is committed to open communication and the highest environmental standards.

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING INFORMATION

Certain statements contained in this news release constitute "forward-looking information" under applicable securities laws and are referred to herein as "forward-looking statements". All statements, other than statements of historical fact, which address events, results, outcomes or developments that the Company expects to occur are forward-looking statements. When used in this news release, words such as "expects", "anticipates", "plans", "predicts", "believes", "estimates", "intends", "targets", "projects", "forecasts", "may", "will", "should", "would", "could" or negative versions thereof and other similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking information pertaining to: the anticipated reduction in operating costs for the Guben Converter and the underlying assumptions supporting the updated OpEx model, including projected savings from transport and logistics, reagent procurement, fixed costs, leach residue reuse, and additional operational efficiencies; the implementation of a revised logistics concept and updated spodumene supply contract; the reuse of leach residues under a memorandum of understanding with Schwenk Zement GmbH & Co KG; the negotiation and execution of a long-term sustainable energy supply agreement with Enertrag SE; the finalization of binding offtake agreements for leach residues; the expected annual production capacity of 24,000 tonnes of lithium hydroxide; the timing and outcome of the Company's review of capital expenditures and updated financial model; the Company's ability to secure project financing; the anticipated construction timeline, commissioning, and operational start-up of the Guben Converter; and the Company's broader business strategy, including its role in Europe's battery supply chain and contribution to the energy transition. Forward-looking information is based on certain assumptions, estimates, expectations and opinions of the Company and, in certain cases, third party experts, that are believed by management of Rock Tech to be reasonable at the time they were made. Forward-looking information is derived utilizing numerous assumptions regarding, among other things: the accuracy of the updated OpEx model and that projected cost reductions will be realized as anticipated; the availability and terms of long-term energy supply agreements and reagent procurement contracts; the successful execution of logistics improvements and leach residue reuse initiatives; the timely completion of CapEx review and financial modeling; the Company's ability to secure sufficient financing on acceptable terms; the availability of skilled labor, equipment, and materials at projected costs; the stability of commodity prices, exchange rates, and general economic conditions; the absence of material disruptions to supply chains, construction schedules, or permitting processes; the accuracy and reliability of technical data, forecasts, and engineering studies. The foregoing list is not exhaustive of all assumptions which may have been used in developing the forward-looking information. While Rock Tech considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect and should not be read as a guarantee of future performance or results. Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by such statements, including but not limited to: the risk that projected OpEx reductions are not achieved or are offset by unforeseen cost increases; delays or failures in securing energy supply agreements, reagent contracts, or offtake arrangements; construction delays, cost overruns, or technical challenges in commissioning the Guben Converter; changes in market conditions, including lithium prices, demand for EV batteries, and availability of financing; regulatory risks, including delays in permitting or changes in applicable laws and regulations; operational risks, including supply chain disruptions, labor shortages, and equipment failures; geopolitical risks, inflationary pressures, and macroeconomic volatility; reliance on third-party contractors and suppliers for critical project components. Except as may be required by law, Rock Tech undertakes no obligation and expressly disclaims any responsibility, obligation or undertaking to update or to revise any forward-looking information, whether as a result of new information, future events or otherwise, to reflect any change in Rock Tech's expectations or any change in events, conditions or circumstances on which any such information is based. The forward-looking information contained herein is presented for the purposes of assisting readers in understanding Rock Tech's plans, objectives and goals and is not appropriate for any other purposes.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.  

¹ There can be no assurance that the ongoing negotiations with Enertrag SE will result in a definitive agreement or that any such agreement, if completed, will be on terms favorable to the Company or will achieve the anticipated benefits.
² https://www.lithium-battery-manufacturer.com/how-much-lithium-is-needed-for-a-1-kwh-battery/
³ Please see the Company's news release dated March 26, 2025 for more information.

SOURCE Rock Tech Lithium Inc.

For further information: Kerstin Wedemann, Chief Legal & Corporate Officer - [email protected], [phone]; Rock Tech Lithium Inc., 2700-40 Temperance Street, Toronto ON M5H 0B4 CAN.