European Lithium Shares Surge on Greenland Project Milestones

Significant operational progress at a key Greenland rare earths project has triggered a substantial rally in the share price of European Lithium. The company holds a major stake in Critical Metals Corp (NASDAQ: CRML), the developer of the Tanbreez project, whose recent concrete steps toward production are driving a market reassessment of European Lithium's portfolio value.

European Lithium's equity has climbed approximately 50% from its recent lows. This upward movement is a direct response to two critical operational developments announced for the Tanbreez project:

• The commencement of construction for an arctic-capable pilot processing plant.
• A $1 million order for a mobile testing laboratory to accelerate on-site geochemical analysis.

The decision to build the pilot plant was made by Critical Metals on January 7, 2026, with completion targeted for mid-2026. This transition from planning to physical implementation is viewed by the market as de-risking the project timeline. The addition of the mobile lab is seen as a strategic operational advantage for the remote Arctic location, enabling faster analysis of rare earth elements directly at the site.

Narrowing the Valuation Gap

The advancing project is intensifying scrutiny on the discrepancy between European Lithium's market capitalization and its underlying assets. The company's holdings include:

• A substantial interest in Critical Metals Corp, which secures its economic interests in the Wolfsberg lithium project.
• A direct 7.5% stake in the Tanbreez project itself.
• A comfortable liquidity position.

In a move signaling management's belief that shares are undervalued, the company has initiated a stock buyback program set to run until March 2026. Such programs typically indicate that leadership perceives intrinsic value to be significantly higher than the current trading price.

Should investors sell immediately? Or is it worth buying European Lithium?

Reassessing the Holding Company Discount

Historically, European Lithium's shares have traded at a discount typical for holding companies—entities whose value is largely derived from stakes in other businesses. The achievement of these tangible, physical milestones at Tanbreez is forcing a market reevaluation of this discount. The project is moving beyond permits and studies into the actual construction of infrastructure, a clear precursor to future production.

This reassessment received external support from a research update issued by First Berlin Equity Research. The analysts reaffirmed their buy recommendation just prior to the recent price surge, a factor that likely contributed to the upward momentum.

Forward Focus: Key Benchmarks Through Mid-2026

Attention now turns to two pivotal upcoming milestones:

• Pilot Plant Completion: The planned mid-2026 commissioning in Greenland will be a crucial test of management's ability to execute on schedule and advance the project as promised.
• Final Offtake Agreements: While a significant portion of future Tanbreez concentrate output is already covered through a joint venture in Romania, the signing of remaining offtake contracts will be key to further securing future revenue streams.

The recent price action reflects a notable shift in perception for European Lithium. It is increasingly being viewed not merely as a discounted investment vehicle, but as a company with core projects entering an active implementation phase. The upcoming Tanbreez milestones through mid-2026 will determine whether this revised valuation is sustained.