European Lithium Ltd (ASX:EUR, OTCQB:EULIF) earlier this week announced that its subsidiary Cromwell has signed a binding term sheet for a 50:50 joint venture with a Romanian state-owned entity to process rare earths from the Tanbreez project in Greenland.
The company told investors that the JV is a key step in reducing Europe’s reliance on Chinese rare earths supply. It said the agreement was positively received by the EU and NATO, given Romania’s permitting advantages and its strategic role in Europe’s defence infrastructure.
European Lithium said the Tanbreez project contains 4.7 billion tonnes of ore, with a current licence to mine 500,000 tonnes per annum. The company noted that the mine is located just 250 metres from deep-water access, removing logistical constraints on shipping.
Chairman Tony Sage said the company expects the mining component to be straightforward, but added that the main challenge will be constructing the downstream processing facility. He said it may take 2–4 years to reach full operational output.
European Lithium also holds lithium assets in Austria, Ireland, and Ukraine, and reported it is fully permitted at its Wolfsberg project. The company said it currently holds $200 million in cash, is debt-free, and has $800 million in tradable shares in Cromwell.
Proactive:
Welcome back to Proactive Newsroom. I'm now joined by European Lithium Executive Director and Chairman Tony Sage. Tony, good morning. It’s great to have you on.
Tony Sage:
Good morning. Nice to be on.
Proactive:
One of your subsidiaries, Cromwell, has now signed a term sheet for a 50:50 joint venture with a Romanian state-owned partner. What are the details?
Tony Sage:
It’s a fantastic opportunity for the EU to reduce its reliance on China’s dominance in rare earths. Cromwell already has offtake agreements in the US with Nucor and Realize, but Europe was missing out. Because our Tanbreez asset is in Greenland — a Danish territory — the EU is pleased to secure its own supply.
Romania was chosen because there are only two nuclear rod reprocessing sites in Europe — one in France and one in Romania — making permitting much easier. Also, the US’s largest military base in Europe is in Romania, so NATO is also very happy with this transaction.
Proactive:
This will directly impact offtake from the Tanbreez project, right?
Tony Sage:
Yes. Tanbreez, in Greenland, is enormous — 4.7 billion tonnes of ore. If fully mined, it would take 1,300 years. Of course, we’re not doing that. We’re approved to mine 500,000 tonnes per year under our current licence. But even that has a significant role in reducing global dependency on China for rare earths.
Proactive:
This deal supports Europe’s supply independence and national security goals. How do you see this developing over the next few years?
Tony Sage:
The mining side is straightforward. The site is just 250 metres from deep water — no dredging needed. The challenge is the processing. For 40 years, the West let China do all the processing, largely due to environmental permitting issues.
Now, it’s clear we can’t let one country control supply. This deposit — one of the largest outside China — will be a game-changer. But it’ll take 2–4 years before we’re in full production. The obstacle isn’t mining — it’s building a processing plant.
We’ve seen other players like MP Materials move processing to Saudi Arabia due to permitting and energy access. Romania is better positioned — it has strong gas supplies and no permitting hurdles.
Proactive:
The lithium price is also moving in your favour. How are your other projects tracking?
Tony Sage:
Across our subsidiary CML, we’ve got three jurisdictions:
Austria (Wolfsberg Project) – Fully permitted and ready to go, but we’re waiting for a stronger lithium price to ensure it’s more than break-even.
Ireland (Leinster Project) – We’ve started early programs following results up to 4% Li₂O.
Ukraine (Dobra Deposit) – Very large at 90 million tonnes grading 1.36%. We bought it three months before the war started. We’re waiting for peace before proceeding.
Proactive:
For those new to the story, how’s European Lithium positioned heading into the new year?
Tony Sage:
We’re in a strong position. We have $200 million in the bank, no debt, and $800 million in tradable shares in Cromwell. That’s about $1 billion in assets — not counting our Irish or Ukrainian holdings. We think that represents very strong value for investors in rare earths and lithium.
Proactive:
European Lithium Executive Director and Chairman Tony Sage — great to have you in the newsroom. Thank you for those updates.
Tony Sage:
Thank you very much.