European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has welcomed news that German car manufacturing giant Bayerische Motoren Werkte Aktiengesellschaft, better known as BMW, has partnered with Critical Metals Corp subsidiary ECM Lithium AT GmbH on a lithium offtake deal.
Offtake transaction
BMW transferred funds of US$15 million to the wholly owned subsidiary for battery-grade lithium hydroxide (LiOH) from the Wolfsberg Lithium Project in Austria which is to be offset against LiOH delivered to BMW.
European Lithium holds 67,788,383 (83.03%) ordinary shares in Critical Metals.
Based on the closing share price of Critical Metals being US$10.67 per share as of June 5, the company’s current investment in Critical Metals is valued at US$723,302,047 (A$1,084,953,070) – with the valuation subject to fluctuation in the share price of Critical Metals.
Through this large interest, EUR is aligned with Critical Metals' vision to become a key supplier for the lithium-ion battery supply chain in Europe.
EUR chair Tony Sage said: “This is a huge milestone for the Wolfsberg project which now paves the way for the next financing steps.”
About Critical Metals
Leading mining company Critical Metals focuses on mining critical metals and producing strategic products vital for electrification and next-generation technologies in Europe.
The company’s flagship asset, the Wolfsberg Lithium Project in Carinthia, Austria, 270 kilometres south of Vienna, is the first fully permitted mine in Europe.
Wolfsberg enjoys easy access to road and rail infrastructure and is poised to become a key lithium product supplier for the growing electric vehicle (EV) market and Europe’s lithium-ion battery supply chain.
Additionally, Critical Metals holds a 20% interest in Austrian mineral projects formerly held by European Lithium Ltd (ASX:EUR, OTCQB:EULIF).
EUR shares have opened 14% higher on the ASX to A$0.057.