European Lithium raises A2.1 mil to progress Wolfsberg project in Austria

New York — European Lithium has raised A$2.1 million ($1.5 million) through a share placement to develop its Wolfsberg lithium project in Austria, including its definitive feasibility study, the company said Sept. 22.

The financing will also be used to fund metallurgical test work of bulk samples to confirm end-products for key customers and markets, progress permitting and approvals required to begin construction, and advance discussions with offtake and financing partners.

The company placed 46.4 million shares at A$0.045 each, with strong support from existing shareholders and new investors, including financing company Winance.

European lithium said the financing would also be used to redeem outstanding convertible notes issued to Winance with a face value of A$500,000.

The company has a strategic engagement with Talaxis and appointed the company's European business development division lead Kimon Gkomozias as an executive director earlier in September to lead European Lithium's development strategy in Europe.

Gkomozias pointed out that, despite the coronavirus pandemic, more electric vehicles had been sold in Europe than in China for the first time, with Europe's share in global battery EV/plug-in hybrid EV sales increasing to 42% from 23% within a year.

"Despite Europe's position as the fastest growing EV manufacturing industry, it has zero domestic production of battery-grade lithium hydroxide product with close to 80% of its current supply coming from China," he said.

He added that the EU had developed a plan to build and reshape its battery supply chain, with the European Commission's action plan on critical raw materials looking at the current and future challenges and actions to reduce Europe's dependency on third world countries, diversifying supply sources and improving resource efficiency, while promoting responsible sourcing worldwide.

The EC also added lithium to its list of critical raw materials.

"European Lithium is well timed and well positioned to benefit from Europe's unprecedented need for lithium, contributing to the European integration of the lithium supply chain and capitalizing on the resulting growth of the regional lithium ecosystem," he said.

The Austria-based Wolfsberg project is close to the EU's largest lithium import markets, namely Germany, Belgium, France, Italy and Spain, as well as to upcoming battery projects in Hungary, Germany, Sweden and Poland.