Rock Tech Lithium Inc. and Transamine Holdings and Investments Limited have announce that they have entered into a definitive agreement to form a joint venture entity called “RTT Lithium SA” (“RTT”).
RTT shall identify, pursue, and secure the supply of and to establish a new route for lithium-bearing spodumene for the Company’s planned European lithium converters. RTT is expected to offer spodumene producers a single resilient and transparent off-take option by providing feedstock to Rock Tech, which intends to supply lithium to customers in the European automotive sector.
Markus Bruegmann, the Company’s Chief Executive Officer, said: “RTT is expected to provide Rock Tech with the capacity to secure a deep pipeline of potential raw material sources and is an important step in advancing the Company’s diversified sourcing strategy. Transamine is a partner with 70 years of expertise in the global non-ferrous raw materials trading space and has the liquidity and access to financing necessary for potential purchase financing.”
Jean-Pierre Adamian, Director of Transamine explained: “We intend to create a new and reliable solution for spodumene concentrate producers to, via Rock Tech, supply the European lithium market as part of a supply chain that is transparent, traceable and ESG compliant, from mines to the off-take market. This will also help us to grow in a strategic market of critical raw materials.”
RTT will be a 50/50 joint venture company to be based in Geneva, Switzerland, which is expected to be formed end 2022. In connection with the joint venture, Rock Tech and Transamine have entered into a definitive agreement to establish the terms governing the formation and operations of RTT.
Pursuant to the definitive agreement, RTT will manage the procurement of spodumene concentrate from global mining companies and spodumene producers and arrange related logistical and storage services, Transamine will provide related financing and Rock Tech will support the identification of spodumene producers, marketing activities, and will be primarily responsible for ESG auditing and compliance.
Future deliveries of spodumene concentrate by RTT to Rock Tech will be governed by long-term feedstock supply agreements to be entered into between RTT and Rock Tech.