Guben’s Lithium Project Secures EU Backing and a 240% Stock Surge Forecast
The Guben lithium hydroxide converter project has cleared a major hurdle by securing all required regulatory approvals. Analysts at First Berlin have also resumed coverage of the company’s stock, assigning it a 'Buy' rating with a price target of 2.40 CAD—suggesting a potential upside of over 240% from its current level of around 0.70 CAD.
The Guben facility has been designated a 'Strategic Project' under the EU Critical Raw Materials Act. This status opens access to financing through the EU’s RESourceEU initiative, which includes grants, low-cost loans, and support from the European Investment Bank. The bank has already indicated a €150 million backing for the project.
Demand for lithium hydroxide in Europe is expected to climb sharply. First Berlin forecasts a 270% increase by 2030, reaching 338,000 tons. The project’s next key step is the Final Investment Decision (FID), planned for 2026. Meanwhile, the company is also advancing a similar converter facility in Red Rock, Ontario. This project aligns with Ontario’s newly launched Critical Minerals Processing Fund (CMPF), a $500 million programme announced on December 15. Both facilities share a comparable design, reinforcing the company’s strategic focus on critical mineral processing. Despite the positive outlook, the stock has faced downward pressure. Investors appear cautious due to concerns over liquidity and the risks tied to executing large-scale projects.
The Guben project now holds regulatory approval and strategic EU backing, positioning it to capitalize on rising lithium demand. With additional support from programmes like Ontario’s CMPF, the company aims to advance both its European and North American facilities. The next major milestone remains the FID in 2026.
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