European Lithium forges ahead with lithium and rare earth projects in tandem with a Saudi Arabian lithium refinery.
European Lithium Ltd has made significant strides over the last quarter, advancing its lithium projects in Austria and Ireland, a rare earth project in Greenland, and a lithium refinery initiative in Saudi Arabia.
The company has also appointed George Karageorge as the new Executive General Manager of Exploration. Additionally, European Lithium received confirmation from the Carinthian state government that an Environmental Impact Assessment (EIA) will not be required for the Wolfsberg Lithium Project. Furthermore, the company has completed technical studies and planning for an energy supply corridor in Austria.
Leinster Lithium Project Acquisition in Ireland
In November last year, European Lithium completed the acquisition of the Leinster Lithium Project in Ireland from Technology Metals plc (TM1). The transaction involved the transfer of 1,371,742 shares in 74%-owned subsidiary Critical Metals Corp (NASDAQ: CRML) to LRH Resources Limited, a subsidiary of TM1. The acquired project lies within the East Carlow Deformation Zone, a key structural trend associated with lithium-bearing pegmatite deposits.
Currently in the early exploration phase, the Leinster Project has identified spodumene-bearing pegmatites in surface material and conducted drilling in 2023. The company plans further exploration in Q2 2025, starting with sampling and drilling across key target areas.
Wolfsberg Lithium Project in Austria
European Lithium’s Wolfsberg Lithium Project received confirmation from the Carinthian state government that an EIA will not be required, expediting the project’s development by simplifying regulatory approvals. The Wolfsberg Project has a long-term supply agreement with BMW AG for the delivery of battery-grade lithium hydroxide. Additionally, the project has completed planning for an energy supply corridor in collaboration with Austrian energy provider KELAG, with construction expected to begin in the first half of 2025.
Tanbreez Rare Earths Project in Greenland
EUR subsidiary Critical Metals Corp continued exploration work at the Tanbreez Rare Earths Project in Greenland. The company completed a 16-hole diamond drilling programme, with initial results confirming high-grade rare earth elements. Assays show an average of 4,722.51 ppm total rare earth oxides (TREO), with 26.96% classified as heavy rare earth oxides (HREO). Additional results include 101.67 ppm gallium oxide (Ga₂O₃), 1,852.22 ppm niobium pentoxide (Nb₂O₅), and 130.92 ppm tantalum pentoxide (Ta₂O). Geological studies have identified four high-grade mineralisation zones within the deposit, with potential to increase future production capacity. The Greenland government has extended certain deadlines under the Tanbreez Project’s exploitation licence, requiring mining operations to commence by 2028.
Saudi Arabia Lithium Refinery Development
European Lithium is advancing plans for a lithium refinery in Saudi Arabia through Arabian New Energy Corp, a joint venture with Obeikan Investment Group. Hatch Ltd, a global engineering firm, has been appointed to design the facility, which is expected to produce up to 20,000 metric tons of battery-grade lithium hydroxide per year. Representatives from Critical Metals Corp and Obeikan Investment Group visited two lithium hydroxide plants in China in December 2024 to gain technical insights into refinery operations.
Additional Exploration Activities
European Lithium is also progressing additional exploration projects:
- Austrian Lithium Projects: Geological mapping and sampling continue at the Bretstein-Lachtal, Klementkogel, and Wildbachgraben projects. Three drill holes, totalling approximately 220 metres, are planned near Quarry Ebner.
- Western Australia: Exploration licence E47/4144 is advancing through the regulatory application process under the WA Mining Act.
- Ukraine: The company is monitoring the geopolitical situation and has paused fieldwork at its Dobra and Shevchenkivske lithium projects.
As of 29 January 2025, European Lithium holds more than 66.4 million shares in Critical Metals Corp. Based on a closing price of US$8.07 per share, this investment is valued at approximately US$535.98 million (A$857.57 million).
