European Lithium Expands Portfolio with Strategic Titanium Acquisition

European Lithium AU000000EUR7

European Lithium is embarking on a significant strategic pivot, moving to diversify its resource base beyond its core lithium focus. The company has announced a major acquisition and a substantial equity sale, actions that have significantly bolstered its financial position.

A key move to enhance liquidity occurred on January 20, 2026, when European Lithium divested five million shares of its holding in Critical Metals Corp (CRML). This partial sale generated net proceeds of approximately 124 million AUD. Following this transaction, the company's total available liquidity stands at a robust 322 million AUD.

Despite this divestment, European Lithium remains the largest single shareholder in Critical Metals, retaining a stake of 48 million shares, which equates to 39.5 percent. As of January 26, 2026, the company values this remaining interest at roughly 879 million US dollars.

A Diversifying Deal: Entering the Titanium Market

In a definitive shift, European Lithium signed a binding agreement on January 27, 2026, to acquire 100 percent of the shares in Velta Holding, a US-based titanium producer. The consideration for the transaction will be paid entirely in stock, with approximately 173 million new shares issued to Velta's previous owners.

Velta operates integrated mining and processing facilities for ilmenite and titanium ores in Ukraine, including the Burzulivsky complex and the Likarivskoye deposit. The company supplies an estimated two percent of the global market for titanium raw materials, a critical resource with applications across aerospace, defense, medical technology, and engineering sectors. The acquisition, pending final due diligence and customary closing conditions, represents European Lithium's strategic move to establish a broader commodity foundation.

Shareholder Movement and Core Project Update

In separate corporate news, Morgan Stanley reported falling below the threshold for a substantial shareholding on January 30, 2026. A series of transactions in late January—including purchases, sales, and the return of borrowed shares—reduced the US investment bank's voting rights below the relevant reporting limit.

Meanwhile, European Lithium's flagship Wolfsberg lithium project in Austria remains a central priority. The project encountered a regulatory development in December 2025 when the Austrian Federal Administrative Court revoked a permit that had exempted it from a full environmental impact assessment. Regional authorities are now required to re-examine the matter.

Key Data Summary:

• Velta Acquisition: Consideration of ~173 million new shares
• CRML Share Sale: 5 million shares sold for ~124 million AUD
• Available Liquidity: ~322 million AUD (post-transaction)
• Remaining CRML Stake: 48 million shares (39.5%)
• Market Capitalization: ~513 million AUD

The success of this diversification into titanium and the regulatory path forward for the Wolfsberg project will be closely watched in the coming months.