The European Lithium Ltd (ASX: EUR) share price finished in the red today. This is despite a morning surge after the company announced positive results from its Wolfsberg lithium project in Austria.
At the close of trading today, the lithium miner's shares are down 4%, swapping hands at 12 cents.
What drove up the European Lithium share price?
European Lithium is a mining exploration and development company intent on acquiring lithium in Europe. Lithium is heavily used in electric vehicle (EV) battery technology, which is gaining momentum in Europe and globally.
Investors appeared to react well to positive test results from the company's Wolfsberg lithium project in Austria earlier in the day.
Analysis of samples from the mine showed high-quality, battery-grade lithium product can be produced with very low impurities. The European Lithium share price jumped soon after the results were released before retreating.
European Lithium chair Tony Sage said: "Together with the recent announcements in the resource upgrades these metallurgical results further enhance the value of the Wolfsberg project."
What else may impact European Lithium?
The Jadar Resources Ltd (ASX: JDR) share price rocketed by 20% on a new lithium deal today. Jadar signed a memorandum of understanding with Yahua International Investment and Development to sell 100% of the lithium concentrate from its lithium projects to Yahua.
Where does European Lithium fit into this? Well, the company holds a 20% stake in Jadar's Weinebene and Eastern Alps lithium projects. In fact, the projects are located immediately adjacent to European Lithium's Wolfsberg deposit.
European Lithium share price snap shot
The European Lithium share price surged early in the day, jumping 12% ahead of Wednesday's closing price following the market update.
However, there appeared to be a sudden selloff of shares at the end of the day with the company finishing down 4% on the previous close. The company's share price has rocketed 150% in the past 12 months.
