European Lithium Expands into Titanium with Major Acquisition

European Lithium AU000000EUR7

In a strategic move that significantly broadens its operational scope, European Lithium has announced the full acquisition of U.S.-based titanium producer Velta Holding. The transaction, structured entirely as a share-based deal, marks a decisive shift for the lithium-focused firm into the titanium market.

On January 27, 2026, European Lithium confirmed its agreement to purchase 100% of Velta Holding’s shares. The acquisition price consists of approximately 173 million new European Lithium shares, which will be issued to Velta’s existing shareholders. Completion remains subject to customary closing conditions and final due diligence.

This deal fundamentally alters European Lithium’s business profile, transforming it from a lithium specialist into a diversified critical materials company. The acquisition brings established ilmenite and titanium ore mining and processing facilities in central Ukraine into European Lithium’s portfolio, specifically the Burzulivsky complex and the Likarivskoye deposit. Velta currently supplies an estimated 2% of the global market for titanium raw materials.

Building an Integrated Value Chain

The newly acquired assets provide feedstock for several high-tech industries, including defense, aerospace, medical technology, energy, and advanced manufacturing. European Lithium’s stated strategy is to develop an integrated production chain—from extraction and processing to the manufacture of components for additive manufacturing. The company anticipates this vertical integration will capture higher margins by moving further down the value chain.

A notable aspect of the deal is Velta’s status as a priority project under the U.S.-Ukraine Mineral Resources Agreement, highlighting its strategic importance to Western supply chains.

Operational Resilience and Future Plans

Despite the ongoing conflict in Ukraine, Velta has maintained its operations and continued to supply its export markets. European Lithium noted, however, that any future capacity expansions or capital investments at the Ukrainian sites will be contingent upon the security situation, in addition to the successful closure of the acquisition.

Executive Chairman Tony Sage described the acquisition as a complementary addition to the company’s lithium portfolio. Velta CEO Andriy Brodsky emphasized that the transaction supports a long-term strategy to concentrate more value-adding activities within Ukraine and the United States.

A Growing Critical Materials Portfolio

European Lithium’s existing assets include lithium projects in Austria, Ukraine, and Ireland, alongside holdings in Australia and the Tanbreez rare earths project in Greenland. Furthermore, the company holds a 44.98% stake in Critical Metals, which it valued at approximately $879 million as of January 26, 2026.

In a related move on January 27, European Lithium applied to list nearly 5 million new shares on the ASX. These shares resulted from the exercise of options.

The success of integrating the Ukrainian titanium operations and realizing the projected margin benefits from the planned value chain will become clearer in the coming quarters. This acquisition undeniably represents a new phase of growth and diversification for European Lithium.

@ boerse-global.de | AU000000EUR7 EUROPEAN