Rock Tech Lithium: First Berlin Reinitiates with "Buy" Rating

First Berlin Equity Research has reinitiated coverage on Rock Tech Lithium Inc., assigning a "Buy" rating with a target price of CAD 2.40. Analyst Simon Scholes emphasizes the company's strategic positioning in lithium hydroxide (LiOH) production, essential for electric vehicles and energy storage systems.

European demand for LiOH is projected to surge by 270% from 2024 to 2030 due to strong EV sales growth and data center energy needs. Rock Tech's Guben Converter Project in Germany, fully permitted, is set to produce 24,000 tonnes of LiOH annually. Its strategic project status under the EU's Critical Raw Materials Act makes it a strong candidate for additional EU funding.

As Europe faces supply vulnerabilities, particularly with a dependence on China, Rock Tech's project offers a promising alternative, aligning with regional efforts to bolster critical material supplies.