Rock Tech Lithium Inc. has signed a non-binding term sheet with Swiss-based commodity trading company Transamine SA (“Transamine”), which provides for cooperation and collaboration between the parties in sourcing and supplying lithium spodumene concentrate feedstock for Rock Tech’s proposed European lithium hydroxide converters.
Pursuant to the Term Sheet, Rock Tech and Transamine have agreed to engage in substantive negotiations regarding a potential joint venture to jointly pursue the development of an integrated spodumene concentrate supply chain, which would advance the Company’s diversified sourcing strategy for the supply of lithium products to the European electric vehicle market. The validity of the Term Sheet is initially limited until 31 August 2022 but may be extended upon mutual agreement by the parties.
According to Markus Brügmann, CEO of Rock Tech Lithium, “in order to support automobile customers in the coming years, during which an upsurge in electric vehicles is expected in Europe, securing the supply chain of lithium hydroxide for batteries is going to be critical. With their established expertise, Transamine would represent an ideal partner for Rock Tech in sourcing the raw material needed for our lithium hydroxide converters. In times of disruption, a partnership with Transamine would further help to secure a resilient supply chain for our operations.”
Jean-Pierre Adamian, from Transamine, commented that: “Transamine is active worldwide for 70 years in non-ferrous ores and concentrates whereas spodumene required by the Rock Tech Converters’ fits perfectly our existing trading activity. In view of also contributing to the low carbon footprint industry, we are happy to enter this JV with the first European compliant converter, which also aims to source recycled lithium sulphate from battery recycling (hydromet recycling of the black mass) which would replace part of the primary spodumene resource. Because the aim is also to obtain around half of the raw material required from recycling by 2030.“