European Lithium pursues lithium hydroxide refinery in Saudi Arabia and all-stock merger with Critical Metals Corp for Greenland rare earths project, targeting critical minerals supply chain.<\/p>\n
European Lithium is pushing ahead on two strategic fronts \u2014 a lithium hydroxide refinery in Saudi Arabia and a proposed all-stock merger with Nasdaq-listed Critical Metals Corp. \u2014 as the company seeks to transform from a pure-play lithium miner into a broad-based supplier of critical minerals.<\/p>\n
The most immediate milestone lies in the merger, which would consolidate full ownership of the Tanbreez rare earths project in southern Greenland. Critical Metals already holds 92.5% of the asset, with European Lithium owning the remaining 7.5%. The deal, valued at roughly US$835 million, is structured as an all-stock exchange: European Lithium shareholders will receive 0.035 Critical Metals shares for each of their own shares.<\/p>\n
Both companies recently extended their exclusivity period after completing reciprocal due diligence. The next concrete step is the signing of a binding implementation agreement, after which a shareholder vote is slated for the third quarter of 2026. The combination is expected to close in the second half of next year, subject to regulatory and court approvals in Australia and the United States.<\/p>\n
While the merger captures headlines, the company is quietly accelerating its downstream ambitions in the Middle East. European Lithium has engaged Hatch Ltd, a global engineering and project delivery firm, to design and engineer a lithium hydroxide refinery in Saudi Arabia. The facility will be built as a 50\/50 joint venture with the Obeikan Investment Group and will process spodumene concentrate from the company\u2019s Wolfsberg project in Austria.<\/p>\n
Should investors sell immediately? Or is it worth buying European Lithium?<\/a><\/p>\n The strategic logic is clear: control more of the value chain from ore to battery-grade lithium hydroxide. For European customers, the refinery offers a reliable supply of processed material in an era of tightening Western supply chains. Hatch\u2019s involvement adds credibility and technical heft to what has so far been a conceptual plan.<\/p>\n On the share price front, European Lithium has delivered staggering returns over the past year. The stock climbed more than 711% in the last twelve months, outpacing Australia\u2019s ASX All Ordinaries index by roughly 657 percentage points. More recently, however, the shares have settled into a quiet consolidation \u2014 trading around A$0.46 on Monday after volatile swings the prior week.<\/p>\n The implied value of the Critical Metals offer, based on terms announced in late April, was around A$0.58 per European Lithium share. For options holders, a separate mechanism has been outlined: they will receive Critical Metals shares based on intrinsic value through a cashless exercise.<\/p>\n