Canadian property developer BMI Group agreed to invest $200 million (US$144 million) in Rock Tech Lithium’s (TSX-V: RCK) proposed processing facility in northern Ontario – a key step toward building a domestic battery materials supply chain.
Under the agreement, BMI will act as the project’s lead limited partner, while Rock Tech controls development, engineering and operations, according to a joint statement issued Wednesday. Both partners have also set aside up to $30 million to advance engineering, permitting, environmental work and early site development activities in preparation for a final investment decision by end of 2026.
Rock Tech’s lithium converter facility is intended to produce battery-grade lithium hydroxide for North American customers, reducing their reliance on overseas refiners. To shorten timelines and cut technical risk, the project will use Rock Tech’s converter design from its Guben, Germany operation, which is fully engineered and permitted.
BMI’s commitment sends “a strong market signal,” Rock Tech CEO Mirco Wojnarowicz said in the statement. “An experienced Canadian partner committing at this level demonstrates that our project is not only technically and economically compelling — it also enjoys the confidence of professional investors.”
Paper mill
Located in Red Rock, about 100 km east of Thunder Bay, the 337-acre site offers access to rail, road and power infrastructure, including 120 MW of capacity. Its main building was previously home to a Norampac paper mill.
The Red Rock property is part of what BMI calls the “Critical Minerals Corridor” – a clutch of industrial buildings in Ontario and Quebec that have been repurposed into “deployment-ready” hubs with existing power and water and access to roads, ports or rail lines.
“As long-horizon developers, BMI Group sees its partnership with Rock Tech as one that will position northwestern Ontario as a key hub in sovereign defence and battery materials supply chains,” company CEO Paul Veldman said.
“Our Red Rock platform provides industrial-ready infrastructure that compresses timelines from site selection to production. This investment reflects our confidence in Rock Tech’s technology, market strategy, leadership, and long-term vision.”
Georgia Lake
Red Rock sits about 60 km south of Rock Tech’s Georgia Lake lithium project, which would supply the feedstock base for the proposed converter. Rock Tech selected Red Rock in 2024 following a North American site search.
Georgia Lake holds 10.6 million indicated tonnes grading 0.88% lithium oxide and 4.2 million inferred tonnes grading 1% lithium oxide, according to a November 2022 resource. A prefeasibility study published that same year envisaged a nine-year life for the mine, pegging total capital costs at about US$291 million ($404 million).
If it goes ahead, Red Rock would have an annual processing capacity of up to 32,000 tonnes of lithium carbonate equivalent, according to a recent Rock Tech investor presentation. Production is targeted to start in 2029.
Rock Tech shares rose 2.1% to 96¢ Wednesday morning in Toronto, giving the company a market value of about $115 million. The stock has traded between 66¢ and $1.30 in the past year.
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