KEY POINTS
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Rock Tech estimates the plant will cost C$596 million.
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The proposed converter is designed to produce 30,000 tonnes of lithium salts annually.
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Construction could begin in the second half of 2027, subject to approvals and final study results.
Rock Tech Lithium has reported preliminary results showing that its proposed lithium processing plant in Red Rock, Ontario, Canada, could be built for an estimated C$596 million, a cost the company considers competitive within the Western lithium supply chain.
The company, listed on the TSX Venture Exchange, released the preliminary findings from an ongoing definitive feasibility study (DFS) for the Red Rock lithium converter on October 8, 2026.
The proposed facility is designed to produce about 30,000 tonnes of lithium salts annually, materials used in the production of batteries and other applications.
Project construction cost estimated at C$596 million
Rock Tech Lithium estimates that the plant will require C$596 million in total capital investment, although the current figure carries a margin of uncertainty of approximately 20% as the feasibility study progresses.
The estimate includes C$546 million in direct capital costs and another C$50 million in owner’s costs. Direct costs generally cover the equipment, construction and infrastructure required to establish the facility, while owner’s costs cover other expenses incurred by the project developer.
The preliminary estimate is expected to help the company assess the financial requirements of the project and determine whether it can proceed to the next stage of development.
Rock Tech CEO Mirco Wojnarowicz said the findings represented an important milestone in evaluating the proposed facility as a modern and scalable lithium production platform in Ontario.
He added that the estimated construction cost could make the project competitive compared with other lithium conversion facilities in the Western supply chain.
Chinese engineering company leads feasibility study
China CEC Engineering Corporation is conducting the definitive feasibility study for the project. CEC provides engineering, procurement and construction services and has experience in developing lithium conversion facilities and other battery-materials plants. The company has worked on facilities with a combined annual production capacity of more than two million tonnes of battery salts, according to Rock Tech.
To support local participation in the project, CEC will also work with established Canadian partners.
The involvement of local companies could help integrate Canadian expertise and suppliers into the development process, although the final project structure and implementation details remain under review.
Final study expected before the end of 2026
The definitive feasibility study is still underway and is expected to be completed by the end of 2026.
Its final findings will provide more detailed information on construction and operating costs, project economics, technical requirements, the development schedule and the proposed financing structure.
These details will be important in determining whether the project can move forward and how the company intends to fund construction.
Rock Tech stressed that the preliminary results remain subject to further engineering, technical and financial assessments by CEC. The estimated capital cost could therefore change before the study is finalised.
Construction targeted for second half of 2027
Rock Tech expects construction of the Red Rock converter to begin in the second half of 2027, provided the final feasibility study supports the project and the necessary approvals are obtained.
The planned facility would give the company a lithium conversion operation in Canada, positioning the project within the broader Western effort to establish battery-materials supply chains.
However, the construction timeline remains conditional on the final study, regulatory approvals and the company’s financing arrangements.
The next major milestone will be the completion of the definitive feasibility study, which should provide a clearer picture of the project’s overall cost, commercial prospects and readiness for construction.
