Infrastructure investor BMI Group Inc. plans to invest $200 million into the development of Rock Tech Lithium Inc.'s Red Rock lithium converter project, enlarging the partnership between the two Ontario-based companies.

Announced Wednesday morning, the funds would go toward building out Rock Tech’s 337-acre site in Red Rock, a township east of Thunder Bay. There, Toronto-based Rock Tech (RCK-X) aims to run a facility that can produce up to 32,000 tonnes of battery-grade lithium per year, supporting Canada’s processing capacity.

The converter is to receive its supply from Rock Tech’s Georgia Lake asset, a lithium ore deposit and concentration site to be located approximately 60 kilometres north of Red Rock. The converted lithium is then expected to supply electric vehicle automakers and battery cathode makers.

"BMI Group's significant investment is a strong market signal,” Rock Tech’s CEO Mirco Wojnarowicz said in the release.

Sustainable Biz Canada has has reached out to Rock Tech for comment. We will update this article with any additional information if it becomes available.

The Rock Tech-BMI partnership

The agreement is expected to be structured as Rock Tech controlling the general partner and BMI acting as the lead limited partner and anchor investor. Rock Tech would hold full control and responsibility for development, engineering and operations of Red Rock.

“This partnership structure reflects our philosophy: we bring the technology, the operational expertise, and the proven converter concept. Our partners invest the capital with expected high returns," Wojnarowicz stated.

The two companies plan to initiate a non-dilutionary funding program of up to $30 million to finance near-term development activities such as a feasibility study and permitting work in preparation for a final investment decision by end of 2026.

Contributions from both partners and government programs are expected to be provided, where each dollar contributed by Rock Tech would be matched by BMI and government funding.

BMI’s intent is to invest $200 million in the Red Rock project as part of a broader equity structure to be finalized. Rock Tech and other partners are anticipated to contribute additional equity capital over time.

Production at Georgia Lake is expected to start in 2028, Wojnarowicz told Sustainable Biz Canada in an interview last year, followed by Red Rock in 2029.

The latest investment is a considerable boost from the $5.5 million BMI committed to Rock Tech in 2024 as part of a long-term lease contract for Red Rock. BMI, based in Tillsonburg, invests in real estate, business development and infrastructure across Canada and the U.S.

"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,” Paul Veldman, the CEO of BMI, said.

“Through our Canadian and European investor base, we are aligned on the need for secure, allied critical minerals processing capacity and the multi-sector coordination to get it done." Veldman continued.

Rock Tech’s Guben facility

Rock Tech's two Canadian projects are expected to come after the company’s lithium converter in Guben, Germany. Rock Tech plans to turn lithium ore and recovered lithium from recycled batteries into battery-grade lithium using technologies that will translate into lower-carbon output compared to the industry standard.

The 1.3-million-square-foot facility is designed to output 24,000 tonnes of lithium hydroxide per year, which would be enough to build batteries for approximately 500,000 electric cars. Rock Tech said it plans to start production in early 2026 in a 2023 document.

Rock Tech aims to take the lessons from developing the Guben project and apply them toward Red Rock, helping to shorten the development timeline.

The German facility is fully engineered and permitted, Rock Tech said, and is designated as a strategic project under the European Union’s Critical Raw Materials Act. Rock Tech has invested over $65 million to date in the Germany-based project.