Guess which ASX lithium stock just rocketed 37%

The ASX lithium stock is now up a whopping 131% in one week.

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ASX lithium stock European Lithium Ltd (ASX: EUR) is rocketing higher on Tuesday.

If the stock can hold onto these gains by market close, this will mark the fifth consecutive trading day that shares have gained at least 10%.

European Lithium shares closed yesterday at 4.6 cents apiece. In morning trade today, they leapt to 6.3 cents, up 37.0%. After some likely profit-taking, they are trading for 6.0 cents apiece at the time of writing, up 30.4%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.6% at this same time.

As for the past few days of trade, the ASX lithium stock gained 15.0% last Wednesday, 10.0% on Thursday, 21.2% on Friday, and closed up another 15.0% yesterday.

Checking the charts, you could have bought European Lithium shares last Tuesday for 2.6 cents apiece. And your investment would already have soared 130.8%.

Boom!

Here's what looks to be driving ongoing investor enthusiasm today.

Man with rocket wings which have flames coming out of them.

Image source: Getty Images

ASX lithium stock rocketing on project progress

The ASX lithium stock appears to be enjoying ongoing support from the update on its Wolfsberg Lithium Project, released several hours after market open on Monday.

The Wolfsberg Lithium Project is located in Austria.

According to the release, ECM Lithium, a wholly owned subsidiary of Critical Metals Corp (NASDAQ: CRML), was notified by the Carinthian state government that an Environmental Impact Assessment (EIA) is not required for the project.

European Lithium holds 74.3% of the ordinary shares in Critical Metals.

The ASX lithium stock said that with underground mining, where the surface area required by the above-ground facilities is less than 10 hectares, no EIA is required by law. Management expects lithium mining on the Koralpe to fall within these bounds.

Investor interest was likely spurred, with the company calling this "an important step" toward realising the project and establishing a European battery supply chain.

What did management say?

Commenting on the EIA waver sending the ASX lithium stock flying higher, European Lithium chairman Tony Sage said, "This is an extraordinary achievement for Critical Metals Corp and our Wolfsberg project, as we chart a path forward for the production of critical minerals in Europe."

He added:

This decree makes the Wolfsberg Project the first new mining project within the EU that is able to pave the way into the fast-track approval process for new mining projects in the critical minerals sector.

This is a significant milestone towards sustainable production of lithium from Austrian mining extraction in an integrated European supply chain located in the heart of Europe.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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