European Lithium Gains Momentum from Project Progress and Market Recovery

European Lithium is currently experiencing a favorable confluence of events, with tangible operational advancements coinciding with an improving market backdrop. This dual tailwind brings heightened attention to both its stake in Critical Metals Corp and its flagship Wolfsberg asset.

The company's financial position was significantly bolstered by a transaction completed in October 2025. European Lithium divested 3.85 million shares of Critical Metals Corp (CRML) to a U.S.-based investor at a price of $13.00 per share. This placement generated gross proceeds of $50 million, equivalent to approximately A$76 million. These funds have now been fully received, providing a solid financial foundation that mitigates near-term funding concerns and allows for continued project development without immediate need for further capital raises.

Simultaneously, the lithium market in Europe is showing signs of recovery. Data from January 7 indicates that European lithium carbonate prices increased by roughly 10% during December 2025. This uptick is attributed to rising demand from the electric vehicle sector and a tightening regional supply. This improved pricing environment enhances the economic prospects and potential offtake negotiations for European Lithium's Wolfsberg project in Austria.

Key Project Milestone: Tanbreez Construction Begins

A major operational catalyst has been confirmed by Critical Metals Corp, European Lithium's Nasdaq-listed partner. Construction has officially commenced on the Tanbreez pilot plant in Greenland. The work is based on a turnkey design and build contract that encompasses engineering, permitting, and logistics for an arctic-capable, multi-purpose facility located in Qaqortoq.

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

• The pilot plant is scheduled to be operational by May 2026.
• This development is viewed as a critical step toward unlocking one of the world's largest known rare earth deposits.
• From a market perspective, moving into the construction phase materially de-risks the project.

Strategic Valuation and Future Catalysts

The retained stake in Critical Metals Corp remains a central value driver for European Lithium. The implied worth of this holding continues to substantially exceed European Lithium's own market capitalization. Market observers suggest that the concrete progress in Greenland could act as a catalyst to narrow this valuation gap.

As CRML transitions from planning to execution, the typical "holding discount" often applied to listed investment companies may begin to compress. This potential is further supported by the broader stabilization of the lithium sector following its 2025 correction.

The focus now shifts to the targeted May 2026 commissioning date for the Tanbreez pilot plant. A successful, on-schedule start-up would validate the project timeline and likely provide support for the CRML share price—directly boosting the value of European Lithium's investment.

With a recovering lithium price environment, a strengthened balance sheet, and advancing projects in both Greenland and Austria, European Lithium appears well-positioned, both financially and operationally, to capitalize on a potential sector-wide recovery.