European Lithium Shares Navigate Profit-Taking Amid Operational Breakthroughs

Critical Metals reports a 40% improvement in rare earth recovery rates at the Tanbreez project, despite profit-taking after a 450% stock surge. A share buyback program begins April 15.

European Lithium, through its partner Critical Metals Corp (CRML), has reported a significant operational achievement just weeks before its pilot plant in Greenland is scheduled to commence operations. Laboratory tests have yielded a substantially improved recovery rate for rare earth elements. Despite this positive development, the market reaction has been one of selling pressure, a move explained by the stock's recent performance history.

Profit-Taking Follows a Meteoric Rise

The shares recently faced downward pressure, retreating to €0.136—a single-day decline exceeding 4%. This movement is largely attributed to investors securing profits. The stock has experienced an extraordinary rally, surging more than 450% over the past twelve months. In a move designed to support the share price and reinforce confidence, the company's management will initiate a new buyback program starting April 15. The plan authorizes the repurchase of up to 135 million shares on the open market through mid-October.

Tanbreez Project Yields Enhanced Recovery Rates

At the heart of the recent news is the Tanbreez project in southern Greenland, in which European Lithium holds a direct interest via its stake in Nasdaq-listed Critical Metals Corp. CRML has not only confirmed but meaningfully surpassed historical test results from 2016. Recent analyses conducted in Australia produced a concentrate grade of 2.96%, representing an approximate 40% improvement over prior figures.

This gain was achieved through an optimized magnetic separation process, which enables recovery rates above 85%. The deposit is considered strategically vital for Western supply chains in technology and defense sectors, given its composition of roughly 30% heavy rare earth elements.

Upcoming Milestones and Strategic Moves

The timing of these lab results is critical as the project transitions from testing to operational phases. The pilot plant is slated to begin operations in May 2026, followed by the extraction of a 150-tonne bulk sample in June. Offtakers in the European Union, the United States, and Saudi Arabia are already awaiting initial deliveries of the high-grade concentrate to develop their own refinery processes.

To secure local logistics, Critical Metals acquired a majority stake in the local development company 60° North Greenland ApS in late March.

Delays Elsewhere in the Portfolio

While progress continues in Greenland, other projects face headwinds. Although the acquisition of US titanium producer Velta was successfully completed in January, the flagship Wolfsberg project in Austria is experiencing delays. Objections from local residents are prolonging environmental assessments. Consequently, the final investment decision with Saudi partner Obeikan has been pushed back to the end of 2026.

Until then, the planned startup of the Greenlandic pilot plant in May will serve as the key indicator for whether the promising laboratory results can be replicated at a commercial scale.