Rock Tech Secures C$4.7M to Fuel EU & North American Lithium Goals

TORONTO, ON – February 25, 2026 – Rock Tech Lithium Inc. announced today the closing of a significant private placement, raising approximately C$4.7 million in gross proceeds. The move, backed by two of its existing institutional shareholders, is a critical injection of capital intended to propel the company’s ambitious strategy of building a localized lithium supply chain across Europe and North America.

The financing comes at a pivotal moment for both the company and the global critical minerals market. As Western nations race to reduce their reliance on foreign supply chains for battery materials, companies like Rock Tech are positioning themselves as key enablers of the green energy transition. The proceeds are earmarked for the continued development of its integrated lithium conversion facilities and for general working capital, providing the firm with crucial runway to advance its flagship projects.

A Vote of Confidence in a Volatile Market

The structure of the deal and the identity of the investors speak volumes. By securing capital from existing institutional backers, Rock Tech has received a powerful vote of confidence in its long-term vision. This is particularly noteworthy given the lithium market's recent turbulence, which saw a significant price slump and project delays throughout 2025 before beginning a recovery in early 2026. Subscribing to the offering at C$1.00 per unit, these investors are betting on the company's ability to execute its plans and capitalize on the resurgent demand for battery-grade lithium.

Each unit in the offering consists of one common share and one purchase warrant, which allows the holder to buy an additional share at C$1.15 for the next 36 months. This warrant structure provides potential future funding and signals investors' belief that the stock price will appreciate well above the exercise price.

However, market sentiment remains divided. While some financial analysis platforms rate Rock Tech’s financial health as "GOOD" and suggest the stock is undervalued, others point to its pre-revenue status and ongoing cash burn as reasons for caution, with analyst consensus ranging from "Strong Sell" to "Buy." One set of analyst targets projects a 12-month average price of C$1.30, while another, more bullish forecast, places the average target at C$2.20. This divergence highlights the high-risk, high-reward nature of investing in development-stage mining companies, where future success hinges on project execution and favorable market conditions. The company's stock (TSXV: RCK) closed at C$1.02 following the announcement, reflecting a market that is cautiously watching its next moves.

Fueling the Trans-Atlantic Battery Supply Chain

The C$4.7 million infusion is not destined for a single, massive expenditure but will rather fuel the incremental, complex work of advancing Rock Tech's core assets: two state-of-the-art lithium hydroxide converters. These facilities are designed to transform raw lithium into the high-purity material essential for electric vehicle batteries.

The first, located in Guben, Germany, is arguably the company's most prominent project. With a planned annual production capacity of 24,000 tonnes of lithium hydroxide, the Guben converter is poised to become a cornerstone of Europe's nascent battery ecosystem. Its strategic importance was officially recognized when it was designated a "Strategic Project" under the European Union's Critical Raw Materials Act (CRMA), a label that can unlock streamlined permitting and access to financing. Recent progress on the Guben site, including the approval of a critical rail connection and the relocation of a gas pipeline, indicates that foundational work is steadily moving forward, with a target completion date previously set for 2025.

Across the Atlantic, Rock Tech is developing a second, larger converter in Ontario, Canada. This facility is planned to produce up to 36,000 tonnes of lithium carbonate equivalent (LCE) per year, sourcing feedstock from sources like its own Georgia Lake Project. This North American pillar of its strategy aims to create a mine-to-battery value chain entirely within a friendly jurisdiction, a goal strongly supported by Canadian and U.S. industrial policy. The recent launch of Ontario's C$500 million Critical Minerals Processing Fund presents a potential future funding avenue for this project.

While the C$4.7 million raised is a fraction of the Guben project's estimated €650 million total cost, it is vital for funding ongoing engineering studies, permitting processes, and the corporate overhead required to manage these multi-year, multi-jurisdictional developments.

Navigating the Broader Lithium Landscape

Rock Tech's capital raise occurs as the global lithium market begins to find its footing. After the 2025 oversupply, analysts predict a rebalancing in 2026, with a projected 13.5% increase in global lithium consumption. This demand is driven by unrelenting growth in electric vehicle sales and the expanding energy storage sector. Prices have already responded, surging in early 2026 as cathode manufacturers aggressively restock in anticipation of a tighter market ahead.

The financing environment for junior resource companies remains challenging, marked by higher capital costs and intense ESG scrutiny. However, the strategic importance of critical minerals has drawn increased involvement from governments and development finance institutions, creating new pathways for funding. Rock Tech’s success in securing private capital in this climate demonstrates its ability to navigate a complex financial world and maintain momentum.

By focusing on responsible sourcing, circular economy principles through recycling, and developing projects in close partnership with local and Indigenous communities, Rock Tech is aligning itself with the stringent demands of modern investors and offtake partners in the automotive industry. This approach is crucial for de-risking its projects and building the social license needed to operate.

Shareholder and Compensation Considerations

In parallel with the financing, Rock Tech also announced the granting of 2,510,000 stock options to directors, officers, and employees. These options, which have an exercise price of C$1.15 and vest immediately, serve as a key tool for incentivizing and retaining talent. Approximately half of these options were granted to directors and officers, aligning leadership's financial interests directly with long-term shareholder value creation.

For existing shareholders, the financing and options introduce a degree of dilution. The 4.67 million shares issued in the private placement represent a dilution of just over 4% on the pre-offering share count. When combined with the potential shares from the newly granted options, the total potential dilution rises to over 6%. This is a standard trade-off for a development-stage company, where shareholders exchange a small percentage of their ownership for the capital required to advance assets and create significantly more value in the future. The success of this strategy will ultimately depend on Rock Tech's ability to translate this fresh capital into tangible project milestones on its path to becoming a key supplier for the battery age.