First Berlin Equity Research has published a research update on Rock Tech Lithium Inc. (ISIN: CA77273P2017). Analyst Simon Scholes upgraded the stock to BUY and maintained his CAD 2.40 price target.

Abstract
RCK has announced a strategic partnership with Siemens with respect to RCK’s planned lithium converter at Red Rock, Ontario. Siemens will integrate its Siemens Digital Twin technology into the Red Rock converter and also evaluate additional Siemens solutions, services and engineering support, with the goal of positioning Red Rock as a blue print for future converters in Canada and allied markets. The signing of the agreement takes place against the background of Canadian, German, G7 and EU initiatives to reduce dependence on Chinese critical mineral imports and support domestic industry in the face of US tariffs. At the same time as the Siemens agreement, the Canadian government department Natural Resources Canada (NRCan), nominated the Red Rock converter as one of the projects to be accelerated within the framework of the G7’s Critical Minerals Production Alliance (CMPA). The CMPA now comprises 56 projects with combined projected CAPEX of CAD18.5bn. In December last year the Ontario government officially launched its CAD500m Critical Minerals Processing Fund (CMPF), ?which will provide strategic financial support to projects that accelerate the province’s critical minerals processing capacity and strengthen domestic supply chains.? We think the RCK/Siemens partnership increases the probability that the Red Rock project will be awarded CMPF funding. It is likely that CMPF funding will be supplemented by financing from Federal Canadian sources and/or Canadian/German cooperation programmes. We gather that Siemens is also considering an equity investment in the Red Rock converter. However, pending the announcement of funding for the project, our price target of CAD2.40 is unchanged. We maintain our Buy recommendation.