European Lithium and Critical Metals Push Merger Forward as Exclusivity Window Widens

European Lithium and Critical Metals Corp extend exclusivity to finalize an $835M all-stock deal, uniting Austrian lithium with Greenland rare earths for Western EV and defense supply chains.

A transatlantic critical minerals powerhouse is taking shape as European Lithium and its US-listed partner Critical Metals Corp. extend their exclusivity period, buying more time to finalise a $835 million all-stock deal. The proposed combination would unite fully permitted lithium assets in Austria with one of the world’s largest rare earths deposits in Greenland, creating a vertically integrated supplier to Western defence and electric-vehicle supply chains.

Under the terms unchanged since the agreement was first outlined, European Lithium shareholders will receive 0.035 Critical Metals shares for each of their own shares. Upon closing, they are expected to control roughly 45 percent of the merged entity. An independent committee has been appointed to oversee the final negotiations, which both sides now aim to conclude with a binding contract by mid-2026.

Balance sheets strengthened ahead of combination

European Lithium has bolstered its cash position in recent weeks, selling a block of Critical Metals shares for A$45 million. That injection lifts its reserves to approximately $356 million, according to the most recent disclosures. Critical Metals, for its part, holds around $124 million in cash and has just raised additional capital through a private placement.

The cross-shareholding structure is also being simplified. European Lithium currently owns about one-third of Critical Metals’ outstanding stock, a stake valued at over $689 million based on recent market prices. That holding will be unwound as part of the merger, reducing future dilution and increasing the free float. The two companies have already completed mutual due diligence, clearing the way for the exclusivity extension.

Key assets: Wolfsberg and Tanbreez

The Wolfsberg project in Austria is Europe’s first fully permitted lithium mine, a milestone that gives the combined group a head start in the region’s race to secure battery metals. Across the Atlantic, the Tanbreez project in Greenland hosts a massive deposit of heavy rare earths, which are critical for permanent magnets used in electric motors and advanced military systems. Critical Metals recently acquired additional stakes in the Greenland operating company, leaving European Lithium with a residual 7.5 percent interest. The Greenland government has also approved the group’s entry into a local logistics provider, further cementing its operational footprint.

Market reaction and shareholder timeline

Investors have responded favourably to the merger’s progress. Shares of European Lithium have surged nearly 60 percent over the past two weeks as details of the extended exclusivity and cash infusion emerged. The next major milestone comes in the third quarter of 2026, when European Lithium shareholders will vote on the proposal at an extraordinary general meeting. Management is targeting completion of the transaction in the second half of that year, after which the combined company’s shares will trade on the Nasdaq, offering greater liquidity for existing holders.