Germany-based industrial services provider Bilfinger and clean-tech company Rock Tech Lithium have signed a letter of intent for an Engineering, Procurement, Construction Management (EPCM) partnership to build Europe's first lithium hydroxide converter.

The companies said the plant, to be built in Brandenburg, Germany, would produce 24,000 metric tonnes of lithium hydroxide annually for the batteries of 500,000 electric cars.

Christina Johansson, interim chief executive officer and chief financial officer of Bilfinger, described lithium hydroxide production for electric car batteries as "essential" for the transition to environmentally friendly transport.

Furthermore, Johansson said the concept developed by Rock Tech Lithium for the plant was "innovative and technologically convincing."

"We look forward to helping shape the next steps in implementing the project using our decades of experience in planning and construction management of industrial plants," Johansson said.

Markus Brugmann, chief executive officer of Rock Tech Lithium, said the cooperation between the two companies would be a "significant milestone" and would help them enable the global energy transition.

 "With Bilfinger, we have found an excellent industrial partner with significant experience in the construction of complex industrial plants - a partner that can implement our project with the highest level of competence," Brugmann said.

"We want to drive the battery era forward together with Bilfinger."