European Lithium Bolsters Financial Position with Strategic Asset Sale

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European Lithium has significantly improved its financial standing through a partial divestment, securing substantial capital shortly after receiving a key regulatory extension for its flagship project.

In early February 2026, the company sold 2.5 million shares in US-listed Critical Metals Corp, generating approximately A$45 million in proceeds. This transaction has increased European Lithium's cash reserves to around A$356 million, providing enhanced financial flexibility. Following the sale, the company retains a holding of over 45.5 million shares in Critical Metals Corp and has indicated no immediate plans for further disposals.

Concurrently, the Austrian government granted a two-year extension for the mining license covering the Wolfsberg lithium project, now valid until 2028. This move provides crucial long-term regulatory certainty for one of Europe's most advanced hard-rock lithium developments.

Path to a Final Investment Decision

European Lithium and its project partners have established a framework targeting a final investment decision (FID) by the end of 2026. The realization of this milestone is contingent upon stable lithium market prices and the successful arrangement of project financing. The Wolfsberg initiative is designed to supply the European electric vehicle and battery storage markets.

Favorable Market and Regulatory Backdrop

These corporate developments coincide with a period of gradual stabilization in the global lithium market, which improves the financing outlook for new production assets. The strategic timing is further supported by the European Union's Critical Raw Materials Act, which aims to expand domestic extraction and processing of essential minerals to bolster the region's battery manufacturing ecosystem.

The combined effect of a strengthened balance sheet and extended operational license creates a more solid foundation for European Lithium. The anticipated FID in late 2026 will ultimately determine whether these improved conditions can be translated into the commencement of actual project construction.