European Lithium Stock’s Meteoric Rise Faces Shareholder Verdict as Merger Vote Nears

European Lithium is entering a critical juncture. Shareholders will vote in late August on a proposed merger with NASDAQ-listed Critical Metals Corp, a transaction that would hand over full control of the prized Tanbreez rare earths project in Greenland and inject a A$306 million cash war chest to accelerate its development. The stock, which has surged more than 700% over the past twelve months, now sits about 17% below its all-time high of €0.31 reached in early June 2026.

The deal is structured through a court-approved scheme of arrangement under Australian law. A binding Scheme Implementation Deed was signed in May, and the scheme booklet – containing an independent expert’s report from Nexia Perth Corporate Finance – is scheduled to be mailed to shareholders at the end of July. The assessment will determine whether the transaction is in the best interests of both equity and option holders. Implementation is slated for the first week of September, pending regulatory and court approvals.

The strategic prize is Tanbreez, described as one of the largest known heavy rare earths deposits globally. Critical Metals already holds a 92.5% stake in the Greenland project; the all-share deal, originally valued at approximately US$835 million, would transfer the remaining 7.5% owned by European Lithium, giving Critical Metals full ownership. The Australian company’s cash pile – A$306 million as of 31 March 2026 – is expected to speed up development at a time when Western governments are scrambling to secure alternative sources of critical minerals.

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

Geopolitical tailwinds are strengthening the case. On 17 June 2026, G7 nations agreed to reduce reliance on China for rare earths and permanent magnets, targeting a single non-G7 supplier’s share below 60% by 2030 and under 50% in the longer term. Japan has also announced plans to send a high-level delegation to Greenland in July or August, with Tanbreez specifically on the agenda.

Meanwhile, European Lithium has secured a two-year extension on its mining license for the Wolfsberg lithium project in Carinthia, Austria – the company’s core asset. Historical drilling at Wolfsberg returned lithium oxide grades of up to 2.49% Li₂O, a high-grade result for a European deposit. The company aims to develop it into a major supplier of battery-grade lithium to the European market.

The stock closed most recently at €0.25, roughly 9% above its 50-day moving average and 173% higher since the start of 2026. That rally comes off a 52-week low of €0.03 in June 2025. But with the scheme booklet due in just days and the shareholder vote set for the end of August, investors are now waiting to assess the full terms before deciding whether to back the deal – or bet on a higher offer.