Rockwood Expands Lithium Production Operation in North Carolina

Rockwood Holdings, Inc. (NYSE: ROC) today announced that the expansion of its lithium production operation in Kings Mountain, NC, is proceeding from preparation to construction.

The project is funded in part by a $28.4 million grant from the U.S. Department of Energy to expand and upgrade the production of lithium materials for advanced transportation batteries.

The plant is being built at the existing Chemetall Foote Kings Mountain production site. When completed, the expansion will be a state-of-the-art facility to produce battery grade lithium hydroxide. Currently the site produces other lithium salts and lithium metal for primary batteries. Previous to the lithium hydroxide expansion project, the company purchased most of the major equipment and began site preparation work. Major civil and mechanical work at the site will begin after issuance of the recently completed environmental assessment. Chemetall Foote is a subsidiary of Rockwood Holdings.

Commenting on the expansion plan, Sen. Kay Hagan (D-NC) said, “Chemetall Foote is at the forefront of advanced battery technology. This Recovery Act grant will give the company the resources to increase the quality of lithium for next-generation batteries, which will create high-tech manufacturing jobs in our state. This funding is an investment in battery technology that will help power electric cars and reduce America's dependence on foreign oil."

As of July 2010, 35 new jobs have been created either at Chemetall Foote or contractors directly working on projects for the site. During the peak of construction in 2011, the project will employ 68 additional people by the company and its contractors. At the conclusion of the project in 2012 the expansion will have created 22 permanent jobs bringing the total site headcount to approximately 130.

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