European Lithium Ramps Up Greenland Drilling Ahead of Pivotal Merger Vote

The rush for Western-controlled critical minerals is intensifying, and European Lithium is placing a sizeable bet on Greenland’s frozen terrain. The company has launched a 10,000-metre drilling campaign at the Tanbreez project, an area estimated to hold 4.7 billion tonnes of mineralised rock. European Lithium holds a direct 7.5% interest in the asset, with a further 37.5% controlled through its partner Critical Metals Corp. The timing aligns with a push by G7 leaders at the Évian summit to slash dependence on dominant rare-earth suppliers to under 60% by 2030, with a long-term target of 50%. A newly formed G7 alliance will focus on digital traceability of lithium and nickel, giving politically stable projects like Tanbreez an added strategic premium.

Investors have already priced in much of the enthusiasm. The stock has surged roughly 173% since the start of the year and an eye-watering 726% over the past twelve months. After a round of profit-taking on Friday, shares settled at €0.25. That price also reflects a waiting game: the market is holding its breath for the upcoming shareholder vote on the planned merger with Critical Metals Corp.

The merger countdown now has a clear timetable. Management will dispatch the official merger document at the end of July, which will include an independent expert report from Nexia Perth Corporate Finance. A court-supervised shareholder vote is set for the end of August, with the transaction’s completion pencilled in for September 2026. Under the agreed exchange ratio, investors will receive 0.035 shares of Critical Metals Corp for each European Lithium share they hold.

Should investors sell immediately? Or is it worth buying European Lithium?

Behind the scenes, a structural lithium deficit is taking shape. Analysts at Westpac and the CRU Group project a supply gap of up to 80,000 tonnes by the end of 2026, a backdrop that is propping up prices. Meanwhile, competition for battery metals is heating up globally: the US Geological Survey estimates 1.43 million tonnes of lithium oxide reserves in the Appalachians, and Albemarle is ploughing ahead with a billion-dollar extraction project in Chile. The European Commission is also exploring lighter merger rules to create homegrown raw-materials champions.

Technically, the stock is sitting comfortably above its 50-day moving average of €0.23, a level that has provided solid support. With a relative strength index of 50.3, momentum is neutral, leaving room for a potential breakout. The next major resistance sits at the 52-week high of €0.31, a mark that could come into play once the July merger documents hit the market.

On the operational front, European Lithium is also progressing its core Wolfsberg project in Austria. After securing an extension to the mining licence, the company is targeting a final investment decision by the end of 2026. But for the near term, all eyes are on Greenland. The first batch of drilling results from Tanbreez will set the tone for the months leading up to the August vote, giving shareholders and the market a clear read on the resource’s potential.