European Lithium Shares Surge on Strategic Greenland Initiative

Shares of European Lithium have staged a powerful rebound, advancing approximately 50% from recent lows. This significant rally was triggered by a strategic announcement from its majority-owned subsidiary, Critical Metals Corp (CRML), concerning its Greenland project on Tuesday. However, the share price movement highlights a substantial valuation gap that the company's management is now actively addressing.

The operational progress has brought a notable undervaluation into sharp focus. European Lithium holds a major stake in Critical Metals Corp. Based on CRML's current market price, this holding is worth roughly 1.2 billion Australian dollars (A$). This figure is more than double European Lithium's own market capitalization, which stands at only about A$430 million.

Company leadership has identified this spread as a clear discrepancy between its market value and its underlying asset value. In response, European Lithium has initiated a share buyback program. This strategic move is further supported by the broader market context: lithium carbonate futures hit a two-year high in January, driven by robust demand forecasts and constrained supply.

Should investors sell immediately? Or is it worth buying European Lithium?

Operational Momentum in Greenland

The recent surge follows Tuesday's confirmation that CRML has ordered a mobile geochemical analysis center for approximately US$1 million. This on-site laboratory is designed to deliver assay results for rare earth elements in around 80 minutes. By eliminating the typical lengthy wait times associated with external labs, the company can dramatically accelerate data acquisition for future drilling campaigns.

This development comes shortly after the January 7 approval for the construction of an arctic-ready pilot plant at the Tanbreez project. That facility is slated to be operational by May 2026. The combination of these operational milestones propelled European Lithium's stock to around A$0.26.

Strategic Path Forward

Attention now turns to the planned commissioning of the pilot plant in May 2026. The share repurchase initiative is set to continue running in parallel until March 2026. The company's strategy is fundamentally underpinned by its Wolfsberg project in Austria, which stands ready as Europe's first fully permitted mine for supplying battery metals.