European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has agreed to acquire US-based titanium producer Velta Holding in an all-scrip deal that would broaden the company’s exposure beyond lithium into another strategically important critical material.
Under a binding agreement announced on Tuesday, European Lithium will acquire 100% of Velta for consideration of about 173 million fully paid ordinary shares, subject to final due diligence and the satisfaction of customary conditions precedent. Upon completion, the shares will be issued to Velta’s existing shareholders.
Expanding beyond lithium into strategic materials
European Lithium said the proposed acquisition represents a strategic expansion into titanium and related industrial minerals used across defence, aerospace, medical, energy and advanced manufacturing applications.
The transaction is intended to diversify the company’s asset base beyond lithium while providing access to established mining, processing and manufacturing assets in Ukraine. Velta operates integrated ilmenite and titanium ore mining and processing facilities in central Ukraine and has been developing value-added production pathways focused on titanium metal powders and finished components.
European Lithium highlighted the potential to develop an integrated production chain spanning extraction, processing and downstream manufacturing, particularly for additive manufacturing applications, which it says could support higher margins and a more sustainable business model.
The company also pointed to the strategic importance of titanium in Western supply chains, noting that the acquisition could strengthen participation in critical materials supply outside higher-risk jurisdictions.
Operating base in Ukraine, export markets maintained
Velta’s assets include the Burzulivsky mining and processing complex and the Likarivskoye deposit, supported by proprietary processing technologies and downstream development initiatives. The group is estimated to account for around 2% of the global titanium raw materials market and is listed as a priority project under the US-Ukraine Mineral Resources Agreement.
Despite the ongoing conflict in Ukraine, European Lithium said Velta has maintained operational stability and continued to service its export markets. Any expansion of production capacity or capital investment programs would remain subject to the prevailing security environment and completion of the proposed transaction.
Management commentary
Executive chairman Tony Sage said the acquisition would complement European Lithium’s existing lithium portfolio while providing exposure to another critical mineral with strong long-term demand fundamentals.
“Titanium is a key material used across aerospace, defence, medical and industrial applications, and Velta’s asset base and technical capabilities provide the company with a platform for future growth,” Sage said.
Velta chief executive Andriy Brodsky said the transaction would support a long-term shift towards value-added production in both Ukraine and the United States.
“These initiatives are focused on both horizontal and vertical integration, supporting a transition from a raw materials-based model to the production of titanium metal and other value-added critical materials,” Brodsky said.
“For Ukraine, this represents investment, employment and the introduction of new technologies,” he added. “For Europe and the United States, it supports the development of reliable and transparent supply chains for critical materials.
“The partnership with European Lithium is expected to strengthen our ability to integrate Ukrainian resources into Western value chains while operating in accordance with international standards of governance and transparency.”
Broader portfolio context
European Lithium is an exploration and development-stage mining company with lithium assets in Austria, Ukraine and Ireland, alongside interests in Australia and the Tanbreez Rare Earths Project in Greenland.
The company holds a 44.98% stake in Critical Metals, which it values at about US$879 million based on Critical Metals’ closing share price on January 26, 2026.