German-Canadian company Rock Tech Lithium said it has reduced the projected operating costs for its planned Guben Converter in Brandenburg, Germany, by 23 per cent, lowering expected expenditure to €93.1 million annually.
The company now estimates the cost of producing battery-grade lithium hydroxide monohydrate will fall from around €5,033 to €3,878 per tonne, based on an annual output of 24,000 tonnes. The facility is scheduled to come online in 2027 and will be capable of producing enough lithium hydroxide to supply roughly 500,000 electric vehicles a year.
“This significant cost reduction is a major step forward,” said Mirco Wojnarowicz, CEO of Rock Tech Lithium. “In today’s volatile market, establishing a lean and competitive project is not just beneficial—it’s essential. By reducing our modelled costs by 23 per cent, we are not only improving competitiveness but also significantly strengthening the financing case for Guben.”
The company said several factors contributed to the revised projection, including a new logistics concept that will cut transport expenses by €11.7 million annually, a revised spodumene supply contract with improved Incoterms saving €10.4 million, and lower reagent procurement costs. Rock Tech also expects to reuse leach residues through a planned offtake agreement with cement producer Schwenk Zement, reducing costs by up to €6.3 million.
Other adjustments include reductions in fixed costs such as fees, insurance and IT, alongside savings in maintenance and labour. Rising energy costs are expected to be offset by a long-term supply agreement under negotiation with renewable energy company Enertrag.
Rock Tech is also reviewing its capital expenditure model and plans to publish an updated financial and profitability analysis in the coming weeks. The project has been recognised as strategic under the EU’s Critical Raw Materials Act and recently secured €800,000 in funding through the EIT RawMaterials KAVA programme, which supports further development of lithium conversion processes at the Guben site.