Critical Metals to acquire European Lithium in $835 million deal

U.S.-based miner Critical Metals Corp has agreed to acquire all outstanding shares of Australia-listed European Lithium Ltd in a deal valued at about $835 million, consolidating full ownership of the Tanbreez rare earth project in Greenland.

The agreement, announced on Monday, was structured as a letter of intent under which European Lithium shareholders will receive 0.035 Critical Metals shares for each share held, Caliber.Az reports per foreign media.

The transaction is expected to be completed in the second half of 2026, subject to customary approvals.

Critical Metals currently holds a 92.5% stake in Tanbreez, one of the world’s largest known deposits of heavy rare earth elements, while European Lithium owns the remaining 7.5%. The project is viewed as strategically significant as Western economies seek to reduce dependence on China for critical minerals used in electric vehicles, wind turbines, medical equipment and defence technologies.

The company said full ownership would streamline development decisions and financing as the project moves towards a potential final investment decision.

Shares in Critical Metals rose more than 6% following the announcement.

The deal builds on a corporate structure that links the two firms, with Critical Metals previously spun out of European Lithium through a SPAC merger involving Sizzle.

The companies also share senior leadership, including Critical Metals chief executive Tony Sage, who serves as executive chairman of European Lithium, and Dietrich Wanke, who leads Critical Metals’ European operations.

The transaction also comes amid broader geopolitical interest in critical minerals. Reuters previously reported that the Trump administration had explored taking a stake in Critical Metals, which would have given Washington a direct interest in the Tanbreez asset.

Tanbreez is considered a key potential alternative supply source for heavy rare earths, which are essential to advanced manufacturing and defence supply chains, as governments seek to diversify sourcing away from China.

By Aghakazim Guliyev