Rock Tech Lithium and Arcore AG finalize merger to establish integrated European lithium supply chain

Rock Tech Lithium Inc. and Arcore AG have signed a binding agreement to merge their respective subsidiaries, creating a fully integrated European lithium company. This strategic move is designed to enhance Europe’s domestic lithium production capacity, reducing reliance on external sources for critical battery materials. The newly formed entity will oversee the entire value chain, from lithium extraction to the production of battery-grade lithium for the electric vehicle (EV) and energy storage sectors.

New Joint Venture to Strengthen Europe’s Battery Industry

Under the terms of the agreement, Rock Tech will hold 75% ownership, while Arcore will retain a 25% stake. The completion of the transaction is anticipated in the second quarter of 2025, pending regulatory approvals. The merger brings together Rock Tech’s Guben Converter in Germany and Arcore’s Lopare lithium-boron-magnesium mining project in Bosnia-Herzegovina, establishing a direct European lithium supply pipeline.

A Strategic Move to Secure Europe’s Lithium Demand

With global demand for battery-grade lithium projected to triple by 2030, the European Union has intensified efforts to localize supply chains. The increasing adoption of EVs and renewable energy storage solutions is driving the need for a sustainable lithium supply, positioning this merger as a significant step toward Europe’s energy transition goals. The joint venture is expected to enhance operational synergies, reduce production costs, and improve competitiveness in the global lithium market.

Industry analysts predict that securing a reliable European lithium supply will be essential to maintaining the continent’s leadership in EV battery production. The European Commission has classified lithium as a critical raw material, underscoring the urgency of developing domestic lithium mining projects to mitigate supply chain disruptions and price volatility.

The Role of the Guben Converter in Europe’s Lithium Ecosystem

At the core of the new venture is Rock Tech’s Guben Converter, located in Germany’s Brandenburg battery cluster. This facility is designed to produce battery-grade lithium hydroxide monohydrate (LHM), a crucial material for EV battery manufacturing. The converter is expected to process lithium feedstock for up to 500,000 electric vehicles per year, aligning with the European Union’s push for clean energy solutions.

The Guben Converter project has already secured full construction, environmental, and operational permits, with final financing arrangements in progress. Engineering firm Worley Ltd. has been engaged as the engineering, procurement, and construction management (EPCM) provider. The project has received strong backing from the state of Brandenburg, which views it as a key asset in advancing Europe’s battery material independence.

The facility will integrate lithium recycling technologies, allowing for the recovery and reuse of lithium from spent batteries. This circular lithium economy model aligns with the European Green Deal’s objectives, reinforcing the importance of sustainable lithium production.

Lopare Lithium Project: A Key Resource for Europe’s Lithium Supply

Arcore’s Lopare lithium-boron-magnesium project in Bosnia-Herzegovina is set to become a significant contributor to the joint venture’s lithium supply chain. With an estimated 600,000 tonnes of Lithium Carbonate Equivalent (LCE), the deposit is among Europe’s largest lithium resources. A recent mineral resource estimate conducted by CSA Global confirmed the site’s high-grade lithium reserves, further strengthening its role in meeting European lithium demand.

Exploration studies indicate that the Lopare deposit has additional resource expansion potential. Ongoing geological assessments suggest that further drilling could significantly increase lithium reserves, enhancing the long-term sustainability of Europe’s lithium mining projects. The joint venture has already submitted a mining concession application, marking the first step toward full-scale production.

A critical advantage of the Lopare project is its ability to produce lithium sulfate on-site before shipping it to the Guben Converter for final processing. This approach lowers logistics costs, improves supply chain efficiency, and keeps a key value-add process within Bosnia-Herzegovina.

The project will adhere to stringent environmental, social, and governance (ESG) standards, ensuring compliance with international mining regulations. The company plans to secure Initiative for Responsible Mining Assurance (IRMA) certification, further reinforcing its commitment to sustainable lithium extraction.

Establishing a Circular Lithium Economy in Europe

A major objective of the joint venture is to develop a cost-efficient and sustainable lithium supply chain for the European battery industry. Rock Tech’s plan to integrate lithium sulfate feedstock into its Guben Converter operations will significantly reduce production costs. Additionally, the company is implementing a lithium recycling process that utilizes black mass recycling to extract lithium from spent batteries, further contributing to a sustainable lithium production model.

By localizing the entire lithium value chain—from mining and refining to battery production—Rock Tech and Arcore are positioning Europe as a leader in battery material security. This initiative aligns with the European Union’s broader clean energy and industrial strategy, ensuring that lithium resources remain within the region.

The collaboration also highlights the potential of European lithium mining projects to support the continent’s transition toward energy independence. With supply chain disruptions affecting the global battery industry, establishing a resilient lithium supply network in Europe is becoming increasingly crucial.

Regulatory Approvals and Future Outlook

The successful completion of the merger is subject to regulatory approvals and other customary closing conditions. The joint venture will proceed with a pre-feasibility study to evaluate the economic and technical viability of the Lopare project, assessing potential mining and processing methods. This study will also focus on the environmental and social impact of the project, ensuring compliance with European sustainability standards.

Rock Tech and Arcore’s strategic alignment marks a critical step in securing Europe’s lithium future. As the demand for battery-grade lithium continues to rise, this partnership is set to play a pivotal role in strengthening Europe’s lithium supply chain, reducing import dependency, and reinforcing the region’s clean energy transition goals.