Critical Metals (Nasdaq: CRML), a U.S. NASDAQ-listed company, announced on November 5 that it has completed the acquisition of European Lithium (ASX: EUR, FRA: PF8, OTC: EULIF). European Lithium is now a wholly-owned subsidiary of Critical Metals, and its listing status on the Australian Securities Exchange is expected to be removed on November 6. The transaction was structured as an all-share deal. Critical Metals issued approximately 90.54 million new shares, with European Lithium shareholders receiving 0.045 new shares of Critical Metals for each share held. Following the closing of the transaction, the company holds a cash balance of around US$264.5 million.
Critical Metals’ flagship rare earth asset is the Tanbreez project in Greenland. The Preliminary Economic Assessment (PEA) published in March 2025 was based on a resource base of roughly 45 million tonnes, estimating an after-tax net present value of approximately US$2.1 billion (at a 15% discount rate). The project is planned to produce around 85,000 tonnes of rare earth concentrate per annum in the initial phase, with potential for expansion to more than 400,000 tonnes per year. The Greenland government approved the mining plan and mine closure plan for Tanbreez in September 2026, valid until 2050. The deposit hosts 19 critical elements including terbium, dysprosium, yttrium, neodymium and praseodymium. Separately, the company leads a consortium that has advanced to the final round of the government tender for the Mrima Hill rare earth and niobium project in Kenya. In Romania, it has a 50:50 joint venture with state-owned entity FPCU to develop a rare earth refinery, designed to process 100,000 tonnes of eudialyte concentrate annually and produce approximately 28,000 tonnes of rare earths and critical metals products per year.
The core strategic rationale of this acquisition lies in consolidated ownership and a streamlined capital structure. European Lithium previously held a 7.5% stake in the Tanbreez project. Upon completion of the transaction, Critical Metals secures 100% ownership of Tanbreez, removing potential constraints on decision-making and financing arising from minority shareholders. Meanwhile, European Lithium previously owned roughly 31% of Critical Metals, creating substantial cross-shareholding and potential selling pressure. These shares have been converted into treasury shares post-acquisition, improving the free-float structure and eliminating a large single shareholder with blocking power. The integration of European Lithium’s cash of approximately US$219 million directly bolsters the funding pool for the construction of Tanbreez. In short, the transaction brings European lithium assets, downstream partnerships and cash resources into the Critical Metals platform anchored by the flagship Tanbreez project, positioning the company to cover both lithium and rare earths within the Western critical minerals supply chain.
Post time: Nov-13-2026
