Europe’s lithium future secured? Rock Tech Lithium and Arcore form powerful alliance

Rock Tech Lithium Inc. and Arcore AG have announced a landmark business combination aimed at securing a European lithium supply chain. The companies have signed a binding Business Combination Agreement to establish a joint venture, referred to as NewCo, which will integrate operations from mining to battery-grade lithium production. This initiative is expected to strengthen Europe’s battery industry by reducing dependence on imported lithium while improving cost efficiency and sustainability. The merger positions the two firms at the forefront of Europe’s transition to sustainable energy by creating a battery materials supply network that aligns with the growing demand for electric vehicle batteries and energy storage solutions.

Rock Tech Lithium will hold a 75% stake in the newly formed company, with Arcore AG retaining the remaining 25%. The European Union has been pushing for greater energy independence, and this move is expected to contribute significantly to securing domestic battery materials. Industry analysts predict that lithium demand in Europe will triple by 2030 due to the expansion of electric vehicle production and energy storage systems. The joint venture aims to provide a steady and sustainable lithium mining project that can support the continent’s ambitious climate targets.

What assets will be integrated into the joint venture?

The partnership between Rock Tech and Arcore will oversee two critical assets. The first is Rock Tech’s Guben Lithium Converter in Germany, a fully permitted refinery designed to produce battery-grade lithium hydroxide monohydrate. This facility is expected to supply enough lithium to power up to 500,000 electric vehicles annually. The second is Arcore’s Lopare Lithium Mining Project in Bosnia-Herzegovina, a large-scale lithium deposit that is projected to supply lithium sulphate feedstock for refining. By integrating these assets, Rock Tech and Arcore will establish a European lithium supply network that ensures a long-term and reliable battery materials supply chain for European automakers and energy storage companies.

The strategic importance of this merger lies in Europe’s ongoing efforts to reduce reliance on lithium imports from China and South America, which currently dominate global lithium production. By refining lithium hydroxide within Europe, the companies aim to create a more sustainable and cost-efficient supply chain. The integration of mining and refining operations within Europe will enhance self-sufficiency and strengthen the region’s energy security.

Why is this merger crucial for Europe’s battery industry?

The European Union has identified lithium as a critical raw material necessary for achieving carbon neutrality. The joint venture between Rock Tech and Arcore marks a major step toward resource independence, mitigating Europe’s vulnerability to supply chain disruptions and fluctuations in global lithium prices. The formation of a European-controlled lithium mining project ensures that the region has direct access to the materials required for energy transition and industrial growth.

Rock Tech’s CEO and Chairman, Dirk Harbecke, highlighted that establishing a European lithium supply chain is essential for strategic autonomy and industrial competitiveness. He pointed out that Europe’s dependence on imported lithium poses a challenge to the long-term security of its energy and manufacturing sectors. Jeff Stone, interim CEO of Arcore AG, described the Lopare project as an asset of national importance and emphasized that the collaboration with Rock Tech would enable the development of an independent and sustainable battery materials supply system within Europe.

What role will the Guben Lithium Converter play in Europe’s EV revolution?

The Guben Lithium Converter, located in Germany’s Brandenburg battery cluster, is set to become a central hub for battery materials supply in Europe. The facility is currently in its final financing phase, with all necessary environmental and operational permits already secured. Engineering and project management firm Worley Ltd. has been selected as the EPCM provider. The German government has expressed strong support for the project, recognizing its strategic importance for the country’s electric vehicle industry. Once operational, the Guben Converter will process lithium hydroxide monohydrate, ensuring that domestically produced lithium is used in European battery manufacturing.

What makes the Lopare Lithium Project a key asset in Europe’s resource strategy?

Arcore’s Lopare Lithium Mining Project in Bosnia-Herzegovina is considered one of Europe’s most significant lithium deposits, with an estimated 600,000 tonnes of lithium carbonate equivalent. A mineral resource estimate conducted by CSA Global confirmed the presence of high concentrations of lithium, boron, and other valuable minerals, making the site a promising long-term resource.

The deposit remains highly prospective, with further exploration expected to expand the estimated reserves. Arcore has already submitted an application for a mining concession, and the next phase of development will involve a pre-feasibility study to assess the project’s technical, economic, and environmental impact. This study will play a crucial role in determining how the lithium deposit can be mined in a way that meets European sustainability standards.

How will the joint venture support sustainable mining and responsible sourcing?

Rock Tech and Arcore are committed to sustainable mining practices and responsible sourcing of raw materials. The companies plan to obtain certification under the Initiative for Responsible Mining Assurance, ensuring that all mining activities align with the highest environmental, social, and governance standards. Rock Tech intends to leverage its experience from the Georgia Lake lithium project in Canada to implement best practices in sustainable resource extraction.

The Guben Converter is also designed to incorporate circular economy principles by utilizing lithium sulphate from black mass recycling. This approach aims to reduce production waste while enhancing the efficiency of the battery materials supply process. By investing in sustainable mining and refining solutions, Rock Tech and Arcore are positioning themselves as leaders in responsible lithium production.

What’s next for the Rock Tech and Arcore joint venture?

The Business Combination Agreement was signed on February 19, 2025, and the transaction is expected to close in the second quarter of 2025. The next steps for the joint venture include advancing the financing and construction phase of the Guben Converter, securing the mining concession for the Lopare Lithium Project, and finalizing the pre-feasibility study to optimize lithium extraction and processing methods. Additionally, the companies will focus on establishing strategic partnerships with European battery manufacturers to ensure a seamless integration of domestically produced lithium into the supply chain.

As demand for lithium skyrockets, this joint venture has the potential to transform Europe’s role in the global energy transition. The partnership between Rock Tech and Arcore represents a significant step toward securing a stable, cost-effective, and environmentally responsible lithium supply for Europe’s electric vehicle and renewable energy markets. By integrating a lithium mining project with a state-of-the-art refining facility, the companies are creating a sustainable supply chain that will support the region’s clean energy ambitions for decades to come.