An Austrian federal administrative court has overturned a prior decision that waived an environmental impact assessment (EIA) for a proposed lithium mining project by Critical Metals. While the court acknowledged that the project falls below the 10-hectare threshold outlined in national law, it ruled that the Austrian regulation does not fully align with European Union legal requirements.
As a result, the Carinthian government has been instructed to conduct a case-by-case evaluation to determine whether the project could pose environmental risks, even though its size would normally exempt it from further review. The ruling underscores the potential supremacy of EU law over domestic thresholds in matters involving environmental protection.
The court also granted permission for an appeal to the Administrative Court of Justice, citing the absence of previous case law addressing whether Austria’s current regulations meet EU standards.
Critical Metals CEO Tony Sage called the lower court’s decision “surprising” and argued it contradicts the EU’s push for greater self-sufficiency in critical minerals. He added that the ruling is not expected to delay the project and expressed confidence that full environmental approval will ultimately be restored.
