European Lithium’s Greenland Venture Gains Momentum with Key Construction Milestone

Investors in European Lithium received positive news this week as Critical Metals Corp, a company in which it holds a significant stake, advanced its Tanbreez project in Greenland. The official approval to construct a pilot plant marks a crucial step toward commercializing rare earth elements, a development that has already triggered a notable rally in the associated share prices.

The financial markets responded immediately to the announcement. Shares in Critical Metals surged approximately 11% in a single session, extending a rally that has seen gains exceed 70% since the end of 2025. This appreciation directly benefits European Lithium, which retains a substantial interest in Critical Metals following a prior sale of $50 million USD worth of shares to an institutional U.S. investor in October 2025. The rising valuation of the subsidiary consequently enhances the value of European Lithium's remaining equity stake.

Tony Sage, CEO, described the construction commencement as a clear and structured pathway to delivering critical infrastructure. The focus has shifted decisively to Greenland, while the company's original Wolfsberg lithium project in Austria remains paused due to current market prices, according to Sage.

Arctic Operations Commence

The subsidiary, Critical Metals, has formally granted approval for building a storage and pilot facility designed for Arctic conditions in Qaqortoq, Greenland. A turnkey construction contract has been awarded to 60° North Greenland, encompassing full engineering services, logistics, construction, and commissioning.

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Scheduled to reach its first operational phase by May 2026, the 80-by-20-meter facility will act as the operational core for steering the Tanbreez project toward production. To solidify its local presence, the company has also purchased a property to serve as an office base and a liaison point with regional authorities.

Project Timeline and Financial Scale

The development schedule for Tanbreez is ambitious. Mining operations are slated to begin in 2027, with initial production targeted for mid-2028. The financial commitments involved are significant, with estimated capital costs in Greenland around $500 million USD. Subsequent downstream processing plants are projected to require an investment exceeding $1 billion USD.

A notable de-risking factor for the project is that 75% of its planned future production has already been pre-sold to customers in the United States and Europe.

All eyes will now be on May 2026 as the next critical milestone. The planned commissioning of the pilot plant will demonstrate whether Critical Metals can maintain its rigorous timeline under the challenging environmental conditions of the Arctic.