Company Interview / European Lithium charges up on US interest

Key points:

- European Lithium raises $35 million from sale of Critical Metals shares

- Share price jumps on speculation of potential US government involvement

- Project focus on Greenland rare earths and expansion into US processing

- Sage highlights institutional shareholders and mineral assets in Ukraine and Ireland

European Lithium (ASX:EUR) has drawn significant market attention after raising $35 million (USD) through a share sale in majority-owned Critical Metals Corporation on the Nasdaq. Tony Sage states Critical Metals sold three million shares to a US investor at $7 each. Market speculation has surged after reports surfaced about possible US government involvement, following similar moves such as the US Department of War’s recent $18 million investment for a 10% stake in Trilogy Metals, part-owned by South32 (ASX:S32). Sage notes that over 150 million shares traded, with European Lithium's share price soaring on this speculation.

Sage explains that European Lithium currently holds a minority stake in a rare earths project in Greenland, with Critical Metals slated to own 92.5%. He points to growing US government interest in securing critical mineral supply chains, including a $400 million equity injection into MP Materials ($MP), and new ambitions to process rare earths within the United States. Sage reveals future ambitions to establish a processing plant in Louisiana, leveraging state government support and connections such as Yucca among investors.

In addition to Greenland, Sage highlights European Lithium's sizeable lithium asset in Ukraine and ongoing activities in Ireland. He describes increased institutional investment, naming BlackRock and Fidelity as shareholders. Sage contrasts the Australian government’s slower pace on critical minerals policy compared to the US approach.