The overarching electric vehicle (EV) market has undoubtedly been one of the fastest-growing industries over the last decade or so and the adoption rate of EVs is only going to continue rising from here on out.
Case in point, according to an Allied Markets research report, the EV market is projected to reach US$802.81 billion by 2027, registering a compound annual growth rate of 22.6 per cent from $162.35 billion in 2019.
Contributing to the increase will, of course, be advancements made in technology and the shift towards carbon-free emissions.
Because many electric vehicles use lithium-ion batteries, this segment of the EV market is also growing and is expected to touch $67.2 billion by 2025 as the demand for EVs, improvements made in battery technology and the launch of new plug-in EV models fuel that growth.
In line with this, lithium companies in the space are ramping up efforts to meet this demand — including Rock Tech Lithium (TSXV:RCK, OTCQX:RCKTFForum).
The lithium ChemTech company is gearing up to becoming vertically integrated through its 100 percent-owned lithium resource in Ontario as well as its Patent-pending processing method for lithium hydroxide at its planned European operations.
In Europe, Rock Tech Lithium aims to build one of the first lithium hydroxide converters on the continent, which has the potential to benefit the lithium-ion battery supply chain and growing EV market.
Although Rock Tech Lithium is one of many players developing a lithium supply chain for the EV battery market, there are unique features about the company that set it apart from its peers that investors should be aware of.
The appointment of Stefan Krause as vice-chairman
Savvy investors know how important a company’s management team and board of directors are to its success.
In order to advance the company as a leader in the lithium supply chain EV market, Rock Tech Lithium announced in early May that it had appointed Stefan Krause as its vice chairman and member of the Board of Directors.
Krause has extensive experience in the overarching automotive industry, having served as CFO of BMW. Additionally, Krause previously held the same position with Deutsche Bank.
The addition of Krause will help the company’s goal of building an integrated lithium business to provide the European battery cell and electric car industry with the necessary precursors.
“We are very pleased to welcome Stefan Krause to our team. With his excellent experience in both the automotive and finance industries, he is an invaluable addition. He understands both the mindset and motivation of the major corporations that are important to our business, as well as the opportunities presented by the huge shift towards electric mobility and battery technology. His know-how from financing several mobility start-ups will be an excellent asset for us," Dirk Harbecke, chairman of Rock Tech Lithium, said in the release.
Krause said that the company has the potential to become a “key partner” to the European automotive industry in terms of lithium supply.
Backed by billion-dollar investors
In addition to the appointment of Krause as vice-chairman and a member of its Board of Directors, Rock Tech Lithium has investment support from billionaire investors.
In a Bloomberg report, it said that for the company to push its position in creating a local electric-vehicle battery industry in Europe, the company will need to raise US$400 million to build a lithium refinery in Europe in order to reduce the EV market’s dependence on China.
Bloomberg further added that the plant will be funded by roughly $150 million in equity from the company and new investors. If successful, it is anticipated the refinery will be open sometime in 2023.
The report also noted the Billionaire investors backing the project include Peter Thiel, who acquired a 5 per cent stake in the company in addition to warrants that have the potential to double that holding.
Similarly, last December, according to public filings Christian Angermayer, a businessperson in Germany, increased his stake in Rock Tech to 19.6 per cent after subscribing for over 30 per cent of the company’s C$8.5 million private placement.
Additionally, Bloomberg said that Alan Howard also has a stake in Rock Tech Lithium with a minority position. Howard is a British billionaire hedge fund manager.
The Georgia Lake property
In addition to the company’s proposed refinery in Europe, Rock Tech Lithium is developing its high-quality, 100 per cent owned lithium resource in Georgia Lake, Ontario.
The company completed a National Instrument 43-101 technical report study on the property in 2021, showing a compliant resource estimate of 6.62 million tonnes measured and indicated in addition to 6.68 million tonnes inferred. The company is now working towards completing a prefeasability study sometime this year and hopes to begin production by 2023.
A unique investment opportunity
With the addition of Krause as vice-chairman and multiple investments from billionaires into the company, Rock Tech Lithium certainly sets itself apart from competitors in the space.
Because China currently dominates the lithium-ion battery market, Rock Tech Lithium is looking to change that with its Europe-based refinery which will have the capacity to produce 24,000 tonnes per year and help put Europe in the driver’s seat of lithium-ion battery production.
In other words, Rock Tech Lithium is doing heavy work in Europe’s lithium-ion battery space. With new technologies in the industry coming into play that are more eco-friendly — including its Georgia Lake property — the company is already ahead of the curve and is well-positioned as unique investment opportunity.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.