European Lithium’s Strategic Stake Gains Momentum with Greenland Project Launch

European Lithium is witnessing a significant appreciation in one of its core strategic investments, driven by concrete progress at a major rare earths venture. The commencement of construction at the Tanbreez project in Greenland has substantially increased the valuation of its holding in Critical Metals Corp, adding both strategic heft and financial value for shareholders.

This development underscores European Lithium's strategic pivot from a pure-play lithium explorer to a more diversified investment vehicle in the critical minerals sector. The company's portfolio extends beyond its cornerstone Wolfsberg lithium project in Austria to include lithium assets in Ukraine and the recently acquired Leinster lithium project in Ireland. The advancement at Tanbreez, however, represents a distinct expansion into the rare earths market.

Construction Commences on Arctic Pilot Facility

Critical Metals Corp has officially approved and initiated the build-out of a pilot processing plant and a multi-functional industrial building in southern Greenland. This step is considered a fundamental prerequisite for advancing the Tanbreez project, which ranks among the world's largest known rare earths deposits.

The company has awarded a turnkey contract for the design and construction to Greenland-based service provider 60° North Greenland. The contractor is tasked with building an Arctic-ready pilot facility, complete with storage and administrative areas, in the town of Qaqortoq.

Infrastructure Built for Extreme Conditions

Engineered for demanding Arctic conditions, the new industrial structure features several key specifications:
* A footprint measuring approximately 80 by 20 meters
* An interior height of roughly 10 meters, plus roof structure
* A layout divided into three functional zones
* Integrated gallery levels for offices and personnel areas
* Structural and technical systems designed to withstand Arctic snow loads, wind forces, and ground frost

Subject to meeting contractual milestones, the pilot plant is scheduled to be operational by no later than May 2026.

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Valuation of Strategic Holding Surges

European Lithium holds 53,036,338 shares in Critical Metals Corp, equating to approximately 44.98% of its issued capital. Based on yesterday's closing share price of $13.47, this stake is now valued at around $714 million USD, or 1.07 billion Australian dollars.

This valuation highlights the growing importance of this investment for European Lithium, reflecting market optimism about the Tanbreez project's progression.

Turnkey Approach Mitigates Execution Risk

The comprehensive agreement with 60° North Greenland places full responsibility on the contractor for all engineering and permitting services, procurement and logistics, as well as construction and commissioning.

Critical Metals CEO Tony Sage described the move as a major step forward for Tanbreez. The turnkey structure is intended to provide a clear and manageable pathway for realizing the pilot plant infrastructure within the challenging Arctic environment.

Establishing a Local Foothold

To further support project development, Critical Metals has acquired a residential property in Qaqortoq. The plan is to convert this into a local office and operational base, strengthening the company's on-the-ground presence and facilitating coordination with contractors, authorities, and the local community.

The pilot facility will serve as the foundation for additional process validation and technical work programs. This infrastructure is expected to enable the gradual, phased development of Tanbreez toward full-scale production in the coming years. The project has reported consistent technical and commercial advances in recent months, including drilling updates and expanded offtake agreements with multiple partners.