MINEX Forum

Tag: Wolfsberg Lithium Project

  • BMW Transfers $15 Million to Critical Metals Corp. for Lithium Offtake

    BMW Transfers $15 Million to Critical Metals Corp. for Lithium Offtake

    Critical Metals Corp. (Nasdaq: CRML), a leading mining development company focused on critical metals and minerals for the green energy transition, announced today that Bayerische Motoren Werkte Aktiengesellschaft (BMW) has transferred US$15 million to ECM Lithium AT GmbH (ECM), a wholly-owned subsidiary of Critical Metals Corp. This payment is related to the offtake of battery grade lithium hydroxide (LiOH) from the Wolfsberg Lithium Project in Austria, which will be offset against lithium hydroxide delivered to BMW.

    “We are pleased to move our partnership with BMW forward and look forward to supporting the production of their electric vehicles in Europe in the years to come, contributing to a more sustainable and domestic battery supply chain,” said Tony Sage, CEO and Executive Chairman of Critical Metals Corp. “This pre-payment further strengthens our balance sheet and will allow us to further advance our development strategy.”

    About Critical Metals Corp. Critical Metals Corp (Nasdaq: CRML) is a leading mining development company focused on critical metals and minerals, producing strategic products essential to electrification and next-generation technologies for Europe and its partners. Its initial flagship asset is the Wolfsberg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure. It is expected to become the next major producer of key lithium products to support the European market. Wolfsberg is well-positioned with offtake and downstream partners to become a unique and valuable building block in an expanding geostrategic critical metals portfolio. The Company has a long-term offtake with a leading global automaker based in Europe and is expected to benefit from European Lithium’s JV with Obeikan Group. Additionally, Critical Metals Corp owns a 20% interest in prospective Austrian mineral projects previously held by European Lithium Ltd (ASX: EUR).

  • European Lithium’s Nasdaq Surge and Future Outlook

    European Lithium’s Nasdaq Surge and Future Outlook

    The ascent of Critical Metals Corp. (CRML) on the Nasdaq exchange has been truly remarkable. With a remarkable surge of more than 26% in a single trading day, CRML concluded at an impressive US$13.03, causing ripples throughout the market. This surge, coupled with a substantial turnover exceeding A$1 million, highlights the strong interest and confidence surrounding CRML’s initiatives. Leading this narrative is European Lithium Ltd (EUR), which recently joined forces with Sizzle Acquisition Corp, positioning itself at the forefront of this growing story. This strategic merger not only enhances EUR’s market presence but also lays the groundwork for potential value appreciation for its investors. Despite CRML’s remarkable success, Barry Dawes of Martin Place Securities points out a disparity between CRML’s performance and EUR’s current share price, hovering around A$0.078. Dawes suggests that EUR’s market capitalization of US$1.064 billion significantly undervalues its inherent potential, given CRML’s trajectory. He argues that EUR shares should reasonably be at least five times higher to mirror CRML’s performance, indicating a considerable value disparity that needs addressing. At the core of European Lithium’s strategic vision lies the development of the Wolfsberg Lithium Project in Austria. This ambitious initiative, now elevated to a pre-development stage, underscores EUR’s unwavering commitment to becoming a pivotal player in the European lithium-ion battery supply chain. With Critical Metals Corp. spearheading this transformative project, Wolfsberg emerges as a crucial asset poised to reshape the regional battery landscape. EUR’s chairman, Tony Sage, expresses confidence in the company’s path, citing access to US capital markets and the synergistic advantages of being listed on Nasdaq. He envisions Critical Metals as a cornerstone supplier in Europe’s burgeoning battery sector, with Wolfsberg playing a catalytic role in driving sustainable innovation. In a positive development, European Lithium Ltd recently settled APL and Okewood Pty Ltd, boosting investor confidence and removing potential obstacles to growth. This resolution, praised by EUR’s executive chairman Tony Sage as “very positive,” underscores the company’s dedication to creating a favourable environment for value enhancement. Sage’s optimism resonates with shareholders, as the elimination of uncertainties clears the path for unimpeded progress and strategic alignment. As European Lithium navigates the complexities of the global market, such resolutions serve as a testament to its resilience and steadfast commitment to delivering value to shareholders.

  • EU’s First Battery-Grade Lithium Mine: Critical Metals Leads the Way

    EU’s First Battery-Grade Lithium Mine: Critical Metals Leads the Way

    Critical Metals, a newly established company, is set to construct the European Union’s first battery-grade lithium mine, the Wolfsberg Lithium Project, located in Austria. The project is expected to become a significant source of battery-grade lithium concentrate, filling a critical gap in the European electric vehicle (EV) battery supply chain. The mine is uniquely positioned to capitalize on its location in the heart of the EV supply chain, minimizing environmental impact by repurposing a former Austrian government-constructed lithium mine containing a substantial amount of battery-grade lithium. Furthermore, European Lithium has entered into a Memorandum of Understanding (MOU) for a key customer arrangement with BMW AG, potentially creating one of the largest direct pre-pays from an original equipment manufacturer (OEM) in Europe’s lithium mining industry. A definitive feasibility study is expected in early 2023, aiming to supply lithium concentrate at a commercial scale and be economically viable. 

    The European Union has set targets to dig up, recycle, and refine lithium, cobalt, and other metals it needs for its green transition. However, the bloc faces challenges in achieving these goals due to a shortage of new money, high energy costs, and local opposition. The Critical Raw Materials Act (CRMA), due to enter force in early 2024, aims to reduce the EU’s reliance on China, which dominates global mineral processing and has already threatened EU supply with export curbs. The CRMA aims to speed up the granting of project permits, but other obstacles remain, such as the need for cheaper energy and EU financing. 

    Several European lithium mining and refining projects are poised to launch commercial operations next year, supported by a push among original equipment manufacturers (OEMs) to regionalize their battery supply chains and reduce dependence on imported material. Based on existing plans, Europe’s annual lithium processing capacity is set to reach approximately 650,000 mt/year by 2028, with more than 20 projects currently advancing their mining and refining operations toward full-scale commercial production. The growth of Europe’s domestic lithium industry comes amid growing concern about an impending global shortfall in the supply of graphite, copper, cobalt, and nickel.

  • European Lithium and Sizzle conclude business merger

    European Lithium and Sizzle conclude business merger

    European Lithium has finalized a strategic partnership with Sizzle Acquisition, resulting in the establishment of Critical Metals.

    This collaboration positions the Wolfsberg Lithium Project as the inaugural flagship asset of Critical Metals, with the company’s immediate focus on advancing the mine’s construction and commissioning.

    The successful conclusion of the transaction and subsequent listing of Critical Metals on the Nasdaq represent significant milestones in bolstering the development of this pivotal lithium asset, essential for Europe’s transition to green energy.

    As part of the agreement, European Lithium has received 67,788,383 ordinary shares in Critical Metals, securing the company’s status as the largest shareholder with an 83.03% stake in the issued capital.

    The estimated value of European Lithium’s investment in Critical Metals currently stands at $839 million (A$1.3 billion), based on the closing share price of $12.38 per share as of February 29, 2024.

  • European Lithium doubles Wolfsberg Project footprint on grant of new licenses

    European Lithium doubles Wolfsberg Project footprint on grant of new licenses

    European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has taken another step toward becoming Europe’s first local producer of battery-grade lithium on being granted new mining licenses and extensions which double the footprint of the advanced Wolfsberg Lithium Project in Austria.

    A public hearing conducted by the Austrian Mining Authority has resulted in the new licenses and extensions, which come as the continent marches on in the strengthening transition to green energy.

    The company has been granted six new mining licenses while three existing licenses have been extended with one of the extensions applying to the existing Andreas field and two to the newly assigned Barbara field.

    Austrian fast-track

    European Lithium chairman Tony Sage said: “The grant of these mining licenses further reinforces our belief that Wolfsberg will be the first local producer of battery-grade lithium in Europe to fuel the green energy transition.

    “The Wolfsberg Project benefits from Austria’s robust and mature mining industry that reflects many of the aims of the EU’s proposed Critical Raw Materials Act, including a fast track for critical projects like ours.”

    Beyond existing resource

    Wolfsberg Project tenement map.

    EUR’s mining licenses now extend beyond the existing Wolfsberg lithium resource and almost double the project’s footprint.

    There are now 20 licenses covering the Wolfsberg Project, which almost double the footprint for the proposed underground mining operations.

    The licenses and extensions flow on from the Wolfsberg Project Definitive Feasibility Study (DFS) released in March 2023 in which mine planning and design incorporated an expanded resource.

    At the time, EUR identified several mining fields extending outside existing license areas that had the potential to be mined in the future.

    Since the DFS, the company applied for a new mining field, called Barbara, adjacent to the existing mining field called Andreas, which contains 11 mining licenses.

    The Barbara mining field provides the company with six new licenses along with the three extended licenses.

    READ: European Lithium strengthens critical minerals portfolio on securing Austrian projects with sample grades up to 3.98%

    European Lithium has also recently increased its Austrian critical minerals portfolio by securing other projects separate to Wolfsberg which have returned sample grades up to 3.98% and have potential to add to the company’s lithium bounty.

    “Significant upside”

    “The grant of the new mining licenses and license extensions provides significant upside to mining operations in the future,” the company’s CEO, Dietrich Wanke, said.

    “We are encouraged by this successful grant as we move toward operational readiness of the Wolfsberg Project,” he added.