VANCOUVER, BC, Oct. 20, 2022 /CNW/ - Rock Tech Lithium Inc (TSX-V: RCK) (OTCQX: RCKTF) (FWB: RJIB) (WKN: A1XF0V) ("Rock Tech" or the "Company") is pleased to announce that it has entered into a definitive supply agreement (the "Supply Agreement") with Mercedes-Benz AG ("Mercedes-Benz") providing for the supply of an average of 10,000 tonnes of battery-grade lithium hydroxide per year. 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$2 billion or €1.5 billion and over 40 percent of the expected annual production from Rock Tech's planned converter capacity in Guben, Germany. The estimated sales volume is based on moderate market forecasts and assessments.
Mercedes-Benz CTO Markus Schaefer meets Rock Tech CEO Markus Bruegmann to seal C$ 2billion lithium hydroxide supply deal (CNW Group/Rock Tech Lithium Inc.)
In furtherance of the strategic partnership announced by Rock Tech and Mercedes-Benz on August 23, 2022, the parties have signed the definitive Supply Agreement providing for the supply of an average of 10,000 tonnes of battery-grade lithium hydroxide per year. Based on moderate market forecasts and assessments the total sales volume is estimated to approximately C$2 billion or €1.5 billion over the five-year term and an initial ramp-up period of the Supply Agreement.
The Supply Agreement provides for a five-year term, commencing with a preceded qualification period in 2026 in which quality and sustainability benchmarks have to be met. Afterwards, it is anticipated that Rock Tech will deliver an average of 10,000 tonnes of refined lithium hydroxide to Mercedes-Benz' supply chain annually under the Supply Agreement from Rock Tech's first lithium converter in Germany, which would represent more than 40 per cent of the planned converter capacity.
"Signing the Supply Agreement marks a significant milestone of our offtake strategy, and I am honored that Mercedes-Benz demonstrates trust in Rock Tech as a new but reliable player in a diversified European battery supply chain," commented Rock Tech's Chief Executive Officer, Markus Bruegmann at the signing event in Sindelfingen, Germany. "We are well aware of the significance of this relationship to both parties. We intend to focus our efforts on providing lithium hydroxide that will help to bring Mercedes-Benz' electric mobility ambitions into action. This arrangement is a major step forward in our plans to directly contribute to clean mobility."