European Lithium welcomes BMW commitment to Wolfsberg project

European Lithium today has welcomed a financial commitment from automaker BMW to the Wolfsberg lithium project in Austria
The German automotive giant transferred $US15 million to Critical Metals Corp as part of an offtake deal at Wolfsberg lithium project

Special Report: European Lithium has received a major confidence boost with one of the world’s largest automotive makers, BMW, providing US$15m in offtake financing to the Wolfsberg lithium project in Austria.

BMW transferred the funds to Critical Metals Corp (CRML), which is 83.03% held by European Lithium (ASX:EUR), under a binding offtake agreement that was signed back in December 2022.

Under the agreement, BMW agreed to make an advance payment of US$15m ($22.5m), which will be repaid through equal set-offs against lithium hydroxide (LiOH) delivered to the car manufacturer.

Wolfsberg is perfectly placed to feed into Europe’s burgeoning electric vehicle industry with it sitting 270km south of Vienna and as the first fully permitted mine of its kind in Europe.

“This is a huge milestone for the Wolfsberg project which now paves the way for the next financing steps,” EUR executive chairman Tony Sage said.

EUR retains significant exposure to the project as the largest shareholder (83.03%) in CRML to whom it had transferred the project to in exchange for US$750m worth of shares in the Nasdaq listed company.

More on Critical Metals Corp

EUR’s 83.03% stake in CRML equals 67,788,383 ordinary shares.

Based on CRML’s closing price of US$10.67 per at the end of June 5, EUR’s investment in the company is valued at US$723.30 million – or $1.08 billion Australian.

This article was developed in collaboration with European Lithium, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.