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Highlights

  • European Lithium jumps 54% to 6.8 cents on 18 June

  • EXIM Bank issues non-binding Letter of Interest for US$120M funding package

  • Funds to support Critical Metals’ Tanbreez rare earths project in Greenland

  • EUR holds a 63% stake in Nasdaq-listed Critical Metals Corp (CRML)

  • Proposal highlights strategic value of Western supply chain diversification.

European Lithium Ltd (ASX:EUR) shares soared 54% on Tuesday morning, hitting 6.8 cents per share, after announcing a potential major funding milestone for its associated entity, Critical Metals Corp (Nasdaq:CRML).

The uplift came following the receipt of a non-binding Letter of Interest (LoI) from the Export-Import Bank of the United States (EXIM), outlining a proposed non-dilutive financing package of up to US$120 million to support development of Critical Metals’ Tanbreez Project, located in Greenland. The 15-year financing package is still subject to several development and due diligence milestones.

A Boost for Tanbreez and EUR's Strategic Holdings

European Lithium is the largest shareholder in Critical Metals, holding approximately 63% equity with 65.9 million shares. The company stands to benefit materially from any successful project financing, particularly given the scale and significance of the Tanbreez rare earths deposit, considered one of the world’s largest.

The proposed EXIM support underscores the growing geopolitical focus on securing Western supply chains for critical minerals, such as rare earth elements, which are vital for clean energy, defence technologies, and high-tech manufacturing.

In a joint statement, the companies acknowledged that the LoI is non-binding and conditional, and any future financing will require:

  • Completion of environmental assessments and permitting

  • Delivery of feasibility studies

  • Provision of reliable supply agreements and credible offtake contracts

  • Satisfaction of EXIM’s due diligence and eligibility policies

No timeline has been provided for when a binding commitment may be finalised.

Positioning for the Critical Minerals Race

The Tanbreez Project is the crown jewel in CRML’s portfolio, alongside the Wolfsberg Lithium Project in Austria—Europe’s first fully permitted lithium mine. With strategic assets spanning Greenland and Austria, Critical Metals Corp is positioning itself as a key Western supplier of rare earths and lithium, essential for the clean energy transition and advanced manufacturing industries.

European Lithium, with its interests extending across Austria, Ireland, Ukraine, and Australia, remains deeply embedded in the critical minerals value chain.

Investor Sentiment Turns Positive

The market has responded enthusiastically to the news, with EUR's share price climbing sharply. The potential for non-dilutive capital, tied to a world-class rare earths project, and the strategic backing of a major U.S. federal agency, has clearly resonated with investors betting on the critical minerals supercycle.