The stock is up 12.25% to 27.5 cents, adding to a strong run that has been building over recent months.

That move leaves the shares up roughly 80% in 2026, as interest across lithium names starts to return following last year's downturn.

There has been no shortage of volatility for European Lithium, but today's jump stands out from the recent trend.

It comes after a new update was released to the market.

Here's what investors are reacting to.

Full control of Tanbreez project locked in

In a statement to the ASX, European Lithium said Critical Metals Corp (NASDAQ: CRML) will move to full ownership of the Tanbreez rare earths project in Greenland.

The deal involves picking up the remaining 50.5% stake, bringing the project under a single owner.

European Lithium will keep a 7.5% free carried interest in Tanbreez.

This removes the split ownership and makes decision-making more straightforward.

Tanbreez is seen as one of the larger rare earths deposits globally, and full ownership helps move it closer to development.

Management also pointed to recent approval from the Greenland government, which clears a key step for the project.

Ownership shift brings clearer pathway

With one owner in place, attention now shifts to what happens next on the ground.

Joint venture structures can slow things down, especially when major funding decisions are involved.

Full ownership gives Critical Metals direct control over timelines, capital allocation, and development plans.

European Lithium still keeps exposure through its retained interest, but without being involved day to day.

That setup removes some of the unknowns around the project and is starting to draw interest from investors.

Lithium sentiment starts to turn

The update lands as conditions across battery materials begin to improve.

Lithium prices have lifted in 2026 after a long decline, with demand expectations picking up and supply looking tighter.

That change has started to show up across ASX-listed names, particularly those linked to large or strategic assets.

European Lithium is not a pure lithium producer, but its rare earths exposure still links into the broader electrification push.

As pricing steadies, investors are starting to revisit names that were sold down heavily last year.

Foolish Takeaway

This kind of move can pull attention back in quickly, especially after a strong run.

But the stock has already climbed a long way this year and still trades with large swings.

Keep in mind that moves like this can fade just as fast as they appear.

For me, this is one to watch rather than chase.

There are other ASX stocks where the setup looks more consistent and easier to follow.

The post This ASX lithium stock just exploded 12%. Here's what sparked it appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Cogstate Ltd (ASX: CGS)

The Cogstate share price is down 19% to $2.03. Investors have been selling the neuroscience technology company's shares following the release of a disappointing business update. Due to timing-related deferrals, Cogstate expects first half total revenue to be in the range of $25 million to $26 million. This is an increase of only 5% to 9% on the prior corresponding period, which is short of its previous guidance for between 18% and 20% revenue growth. And with management expecting costs to increase and put pressure on margins, its earnings will also be well short of what the market was forecasting.

European Lithium Ltd (ASX: EUR)

The European Lithium share price is down 5% to 18 cents. This morning, this critical metals company revealed that a term sheet has been executed for a 50%-50% joint venture between Critical Metals Corp (NASDAQ: CRML) and Fabrica de Prelucrare a Concentratelor de Uraniu of Romania. The latter is a state-owned entity and strategic partner. European Lithium owns approximately 45% of Critical Metals Corp. Its flagship Tanbreez project is one of the world's largest, rare earths deposits and is located in Southern Greenland. Broad weakness in the rare earths industry today appears to be overshadowing this.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is down 2.5% to $1.73. This follows the release of the fund manager's latest funds under management (FUM) update this morning. According to the release, GQG Partners' FUM grew approximately 1.5% to US$166.1 billion during the month of November. While this is positive, the FUM growth was all performance related, with the company continuing to experience outflows. The company recorded a total monthly fund outflow of US$2.4 billion for November, with weakness across all four segments.

Lindian Resources Ltd (ASX: LIN)

The Lindian Resources share price is down almost 5% to 36.2 cents. This is despite the rare earths company announcing that it has completed the final US$10 million tranche payment for the acquisition of Rift Valley Resource Developments Limited. It is the Malawian company that holds 100% ownership of the Kangankunde Rare Earths Project. The company's executive chair, Robert Martin, commented: "Achieving 100% ownership of Kangankunde marks another important milestone in Lindian's journey. This structure provides clear alignment of our operational entities under which recent contracts have been secure, and with Stage 1 construction advancing rapidly and Stage 2 studies well underway, this consolidation provides full strategic and operational control as we move toward first production on what is one of the rare earth industry's most significant development projects."

The post Why Cogstate, European Lithium, GQG Partners, and Lindian Resources shares are falling today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Breville Group Ltd (ASX: BRG)

The Breville share price is down 4.5% to $28.26. This is despite there being no news out of the appliance manufacturer. However, it is worth noting that consumer discretionary sector is out of form today. So much so, the S&P/ASX 200 Cons Disc index is down 1.1% at the time of writing.

European Lithium Ltd (ASX: EUR)

The European Lithium share price is down 33% to 16.7 cents. This morning, this lithium explorer advised that Critical Metals Corp. (NASDAQ: CRML) has sold 3 million CRML shares to a single US institutional investor at US$7 per share. This represents a 12% discount to its last close price. This has raised US$21 million (A$31.75 million) in net proceeds for European Lithium. The company's executive chair, Tony Sage, said: "This transaction again highlights the value of the Company's holding in CRML. The remaining 60 million shares held in CRML, using the $US11.50 closing price on the Nasdaq yesterday, values the Company's holding at approximately $US689M ($A1,061m), which is well above the current market capitalisation of EUR."

Reece Ltd (ASX: REH)

The Reece share price is down over 4% to $11.12. This has been driven by the plumbing parts company's shares going ex-dividend this morning for its final dividend of FY 2025. In August, the company released its full year results and declared a fully franked final dividend of 11.9 cents per share. This will be paid to eligible shareholders later this month on 22 October.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 15% to 50.2 cents. This morning, this gold miner revealed that it has received firm commitments for an institutional placement to raise a total of $58 million before costs. These funds are being raised at a 22% discount of 46 cents per new share. Management notes that the placement was overbid, with significant demand from leading Australian and international institutional investors. It also received strong support from existing institutional shareholders. St Barbara's managing director and CEO, Andrew Strelein, said: "The placement allows us to progress the change out of the truck fleet at Simberi to improve efficiency and reliability, as well as finalising the Feasibility Study and advancing Pre-Expansion Growth Capital items. The new funds will also enable us to complete the Pre-Feasibility Study on the 15-Mile Processing Hub at Nova Scotia, which is due in the March quarter of 2026, and progress plans for the potential re-opening of Touquoy for stockpile processing."

The post Why Breville, European Lithium, Reece, and St Barbara shares are sinking today appeared first on The Motley Fool Australia.

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.

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.

The post Guess which ASX lithium stock just rocketed 37% appeared first on The Motley Fool Australia.

At the time of writing, the ASX lithium stock is up 12% to 5.6 cents.

This is despite many of its peers, such as Core Lithium Ltd (ASX: CXO), tumbling deep into the red today.

Why is this ASX lithium stock surging?

Investors have been buying the company's shares this morning after it released an announcement relating to the Wolfsberg Lithium Project in Austria.

According to the release, Bayerische Motoren Werkte Aktiengesellschaft, which is better known as BMW, has transferred funds of US$15 million to ECM Lithium, a wholly owned subsidiary of Critical Metals Corp (NASDAQ: CRML).

European Lithium holds approximately 67.8 million shares in Critical Metals. This represents approximately 83% of its outstanding stock and values its investment at approximately US$723.3 million.

BMW's funds transfer is in relation to the offtake of battery grade lithium hydroxide (LiOH) from the Wolfsberg Lithium Project. This is to be offset against LiOH delivered to the auto giant in the future.

Commenting on the news, the ASX lithium stock's chairman, Tony Sage, said:

This is a huge milestone for the Wolfsberg project which now paves the way for the next financing steps

What is Critical Metals?

Critical Metals is a leading mining company focused on mining critical metals and minerals.

It was formed earlier this year when European Lithium completed a business combination between the ASX lithium stock and Sizzle Acquisition Corp. Commenting at the time on the business combination, Sage said:

The Company is thrilled to announce completion of the transaction that brings Critical Metals to life and supports the future commercialisation of the Wolfsberg Project on Nasdaq.

With access to US capital markets and funds raised in the process of the listing, we believe that Critical Metals is well positioned to become a key supplier for the lithium-ion battery supply chain in Europe. Critical Metals' future success as a Nasdaq listed company is also expected to create a significant increase in shareholder value for EUR shareholders.

The ASX lithium stock notes that the Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure to become the next major producer of key lithium products to support the growing demand for electric vehicles (EVs) and Europe's burgeoning lithium-ion battery supply chain.

The post ASX lithium stock rockets 12% on BMW deal appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

European Lithium Ltd (ASX: EUR)

The European Lithium share price is down almost 4% to 7.7 cents. This morning this lithium explorer announced that its Wolfsberg Lithium project in Austria has a net prevent value of US$1.5 billion based on measured and indicated resource of 9.7 million tonnes at 1% Li2O. However, this afternoon, the company retracted its announcement and told investors to wait for its definitive feasibility study at the end of the current quarter.

PEXA Group Ltd (ASX: PXA)

The PEXA share price is down 2.5% to $12.00. Yesterday was the date of the transfer of PEXA shares to eligible Link Administration Holdings Ltd (ASX: LNK) shareholders. Some investors may have decided to sell these on-market today.

Polynovo Ltd (ASX: PNV)

The PolyNovo share price is down 2.5% to $2.44. This is despite there being no news out of the medical device company. However, prior to today, the PolyNovo share price was up almost 28% in the space of a month. This may have led to some profit taking from investors on Wednesday.

Xero Limited (ASX: XRO)

The Xero share price is down 3.5% to $69.07. Last week, Citi retained its buy rating but trimmed its price target on the cloud accounting platform provider's shares to $92.40. This followed news that the UK has delayed its Making Tax Digital initiative by two years to April 2026. Making Tax Digital was expected to be supportive of subscriber growth in the key UK market.

The post Why European Lithium, PEXA, PolyNovo, and Xero shares are dropping today appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are charging higher:

European Lithium Ltd (ASX: EUR)

The European Lithium share price is up 15% to 8.3 cents. Investors have been buying this lithium explorer's shares after it announced a binding offtake agreement with auto giant BMW. From 2026, European Lithium will supply BMW with a total of 50,000 metric tonnes of battery grade lithium hydroxide from the Wolfsberg Lithium Project in Austria.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 7% to $3.04. Evolution and other gold miners are charging higher today after the gold price rose strongly overnight. This has led to the S&P/ASX All Ordinaries Gold index rising an impressive 4.9% on Wednesday.

MedAdvisor Ltd (ASX: MDR)

The Medadvisor share price is up 11% to 25 cents. This morning, the medtech company released its revenue guidance for the first half of FY 2023. Medadvisor revealed that it expects to report half year revenue between $58 million and $61 million. This will be up 50% to 60% on the prior corresponding period.

REA Group Limited (ASX: REA)

The REA share price is up 3% to $112.39. This may have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has retained its conviction buy rating with a slightly trimmed price target of $158.00. Goldman commented: "Following the recent decline in share prices, REA/DHG are now trading on 19x/13x 12mf EBITDA, which we see as very attractive vs. historical levels (>20% discount)."

The post Why European Lithium, Evolution, MedAdvisor, and REA shares are charging higher appeared first on The Motley Fool Australia.

In morning trade, the lithium explorer's shares were up as much as 22% to 8.8 cents.

The European Lithium share price has pulled back a touch since then but remains up 15% at 8.3 cents.

Why is this lithium share racing higher?

Investors have been scrambling to buy the company's shares this morning after it announced a binding offtake agreement with auto giant BMW.

According to the release, European Lithium will supply BMW with a total of 50,000 metric tonnes of battery grade lithium hydroxide from the Wolfsberg Lithium Project in Austria.

This is expected to begin in 2026 and continue for six years until 2031, at which point the offtake agreement can be extended for three years. The first year will see the supply of 5,000 metric tonnes to BMW. After which, the agreement is for 9,000 metric tonnes of battery grade lithium hydroxide each year.

Pricing will be based on Fastmarket spot prices for lithium hydroxide with an unspecified discount applied. Though, before all that happens, the agreement is conditional upon the successful start of commercial production and full product qualification and certification.

The release also notes that BMW will make an advanced payment of US$15 million, which will be repaid through equal set offs against the supply delivered to BMW.

'A key milestone'

European Lithium's executive chairman, Tony Sage, appeared to be very pleased with the news. He said:

With the signing of the binding offtake agreement with BMW, our first offtake is secured, and we look forward to partnering with BMW in the future.

The company added:

Securing its first offtake is a key milestone which will allow the Company to focus on the final steps of development and construction of the Wolfsberg Project while it looks to the future and builds a portfolio of prospective battery metals projects located in Europe.

The post Guess which ASX lithium share is rocketing 22% on a deal with BMW appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are pushing higher:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up over 6% to $1.29. This morning this lithium developer announced the appointment of its new CEO. According to the release, former Rio Tinto Limited (ASX: RIO) senior leader Gareth Manderson will take the helm on Monday. Manderson has 28 years of experience in the mining and minerals sector.

European Lithium Ltd (ASX: EUR)

The European Lithium share price is up 8% to 8.85 cents. Investors have been buying this lithium explorer's shares after it announced an agreement with BMW. According to the release, the two parties have entered into a non-binding memorandum of understanding for European Lithium's first offtake of battery grade lithium hydroxide.

Incannex Healthcare Ltd (ASX: IHL)

The Incannex Healthcare share price is up 22% to 27.5 cents. Management notes that this acquisition adds 22 clinical and pre-clinical research and development projects to the Incannex pipeline. It rather ambitiously estimates that these projects represent aggregate addressable markets of approximately US$400 billion per annum.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is up 2% to $4.65. This may have been driven by a broker note out of UBS this morning. According to the note, the broker has reiterated its buy rating and $6.55 price target on the airline operator's shares. Its analysts believe that recent weakness has created a compelling buying opportunity for investors.

The post Why Core Lithium, European Lithium, Incannex, and Qantas shares are pushing higher appeared first on The Motley Fool Australia.

But one small-cap lithium stock is leaving them far behind.

Shares in European Lithium Ltd (ASX: EUR), with a market cap of some $143 million, are soaring 18% at the time of writing, having earlier posted gains of more than 34%.

This comes after the ASX lithium share emerges from yesterday's trading halt, which it requested "pending an announcement regarding offtake arrangements."

That announcement was released this morning when European Lithium reported on a deal with Bayerische Motoren Werke (ETR: BMW).

And ASX investors have taken note.

ASX lithium share rockets on agreement with BMW

European Lithium reported it has signed a non-binding memorandum of understanding (MOU) with BMW, securing its first offtake of battery grade lithium hydroxide (LiOH).

The MOU will see European Lithium and BMW cooperate in negotiations for "suitable commercial terms" for BMW to purchase LiOH from the ASX lithium share. BMW will have the first right to purchase 100% of the LiOH produced from the identified resources.

Commenting on the MOU, Tony Sage, European Lithium chair, said, "Securing our first offtake with BMW AG is another key milestone for the company. Partnering with BMW AG is an ideal fit for EUR".

European Lithium said no assurance is given that the non-binding MOU will progress to a binding contract.

Should the parties agree to a binding contract, BMW will pay US$15 million upfront. European Lithium will repay that through equal set offs against the LiOH it delivers to BMW.

The ASX lithium share said it will use the proceeds from the prepayment to develop its Wolfsberg Project. That includes supporting the commencement of the construction phase.

European Lithium stated:

Securing its first offtake is a key milestone allowing the company to focus on the final steps of development and implementation of the Wolfsberg Project while it looks to the future and builds a portfolio of prospective battery metals projects located in Europe.

How has European Lithium been performing?

Though European Lithium has struggled this year, down 31% in 2022, the ASX lithium share remains up 60% over the past 12 months.

For some context, the All Ordinaries Index (ASX: XAO) is down 7% since this time last year.

The post Guess which ASX lithium share is rocketing 18% on a new deal with BMW appeared first on The Motley Fool Australia.

At the time of writing, the lithium miner's shares are up a sizeable 9.52% to 11.5 cents. It's worth noting, however, that despite the strong gains, its shares are still down 14.8% in a month.

Why is European Lithium shooting for the stars?

Investors are driving up the European Lithium share price following upbeat sentiment on the company's potential commercial opportunities.

According to its release, European Lithium advised it has signed a multi-tiered non-binding memorandum of agreement (MOA) with Traxys.

This sets up the future supply of lithium hydroxide (LiOH) from European Lithium's Wolfsberg Project in Austria.

Under the terms, Traxys will retain exclusivity until the end of the first quarter of 2022. This will allow it to finalise the offtake agreement with the miner.

Traxys will also provide support in securing working capital and other project financing facilities for the development of the Wolfsberg Project. So far, the physical commodity trader and merchant has introduced European Lithium to financial institutions in relation to project finance. This has led to the opening of direct communications between European Lithium and the potential lenders.

Furthermore, discussions are being scheduled regarding a potential investment by Traxys for the commercialisation of the Wolfsberg Project.

European Lithium chair Tony Sage said:

Finalising an offtake agreement is another key milestone for the Company and will add to recent developments at the Wolfsberg Project. In the current high lithium price environment, partnering with Traxys and leveraging their expertise will achieve the best result for shareholders while the company retains flexibility.

About the European Lithium share price

In the past 12 months, the European Lithium share price has boasted a gain of around 140% from continued positive investor sentiment. The company's share price charged higher in early November following a resource re-estimation of the Wolfsberg Project.

Based on today's price, European Lithium has a market capitalisation of around $124.25 million, with roughly 1.08 billion shares outstanding.

The post Why the European Lithium (ASX:EUR) share price is rocketing 9% appeared first on The Motley Fool Australia.

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.

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At the time of writing, European Lithium shares are swapping hands for 14 cents, down 3.45%.

European Lithium expands access to US investors

A possible catalyst for the fall in the European Lithium share price is that investors are fearing a share dilution.

According to the release, European Lithium's ordinary shares are now quoted on the OTCQB market. Trading under the symbol EURIF, the listing provides direct access to US institutions and retail investors to invest in.

A diversified shareholder base bolsters the company's strategic efforts to scale up its lithium projects in Europe. The company is focused on developing the Wolfsberg Lithium Project in Austria to production and securing critical local lithium supply.

European Lithium's primary listing is on the ASX, with the secondary quotation on the OTCQB market and the Frankfurt Stock Exchange, under the symbol PF8.

European Lithium executive chair Tony Sage commented:

We're actively engaging with US investors and institutions who have expressed strong interest in the company and its projects. We believe that providing a convenient and transparent trading platform for US investors to directly access our shares will improve liquidity and broaden awareness of the company among mature and sophisticated investors with strong interest in lithium.

More on the OTCQB market

The OTCQB market, also called the "Venture Market", is a trading platform that is operated by OTC Markets Group Inc in New York. The middle-tier market provides a home for shares that are not listed on the two big United States exchanges, NYSE and NASDAQ.

European Lithium share price summary

Over the last 12 months, the European Lithium share price has accelerated to post a 230% gain. Year-to-date, its share price performance is almost as impressive, up 210%.

Since hitting a 52-week high of 19 cents in early November, European Lithium shares have retreated for the time being.

Based on today's price, European Lithium presides a market capitalisation of roughly $155.9 million, with approximately 1.08 billion shares outstanding.

The post European Lithium (ASX:EUR) share price sinks after listing in US appeared first on The Motley Fool Australia.

Today's gain comes after an update from the European lithium exploration company regarding its Austrian drilling program.

Let's investigate further.

What did European Lithium release?

Firstly, European Lithium delivered the update to its Wolfsberg Lithium Project via an investor presentation.

The release detailed results from the company's recently completed pre-feasibility study (PFS), amid other progress points.

European Lithium explained it had several positive findings from the PFS. For instance, the project now has a net present value (NPV) of US$339.4 million, "based on JORC compliant resource" at almost 11 million tonnes.

Moreover, as a "key investment highlight" from the report, European seeks to be "the first local lithium supplier into an integrated European battery supply chain".

In addition, production is "anticipated to commence (in) 2023", potentially leading the company to be "the first battery-grade lithium producer in Europe", as per the release.

Regarding its sustainability and clean energy obligations, European stated:

(European Lithium is) Setting the highest standards to fuel a sustainable future of European electromobility and storage systems, committed to use of cutting-edge technology, for clean production.

Investors are buying the company's shares in droves following the announcement, pushing the European Lithium share price well into the green.

To illustrate, European Lithium shares are at the time of writing exchanging hands at 8.4 cents apiece, up 29.23%.

European Lithium share price snapshot

The European Lithium share price has posted a year to date return of 80%, extending the previous 12 month's climb of 72%.

As a result, these results have outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.

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During early trade, the lithium miner's shares were in positive territory, reaching an intraday high of 8.4 cents. However, the European Lithium share price has since fallen to 7.2 cents at the time of writing, down 6.9%.

What did European Lithium announce?

The European Lithium share price is seesawing today after providing a progress update of its flagship asset.

In its release, European Lithium advised it's on track with the definitive feasibility study of its Wolfsberg Lithium Project.

Dorfner, selected to undertake metallurgical test-work at the mine, received samples from the company's 1500 tonne bulk sample stockpile. Currently, the raw materials are being carefully analysed, with leading engineering group DRA Global overseeing the process.

European Lithium it would receive a full and final report oN the metallurgical results within the coming months. Together, along with other works completed by the company, the report will be used for a final definitive feasibility study.

European Lithium highlighted that completing the metallurgical test-work will allow it to optimise the design for its hydrometallurgical production facility. In turn, this will save significant costs and time in fine-tuning the plant to maximise efficiency for future production lines.

Quick take on the Wolfsberg Project

Located 270km south of Vienna in Austria, the Wolfsberg Project aims to become first local lithium supplier for European batteries. The company believes that its late-stage project is well placed to target the largest lithium import markets in the European Union.

Most notably, the European automobile industry is rapidly transitioning to electric vehicles, thus requiring lithium to power its batteries. With an existing mining permit, and strategically placed in the heart of Europe, the company is poised to take advantage of the growing market. It expects that the Wolfsberg Project mine will be in production in 2023.

Management commentary

European Lithium chair Tony Sage highlighted the company's assets to move into production, saying:

European Lithium has the major advantage of an existing permitted working mine in central Europe, to provide Dorfner with the tonnage needed to build a pilot plant and produce samples for met testing.

Successful metallurgical testwork progresses our strategy toward the DFS that will see the company advance towards becoming a near term, high quality battery-grade lithium hydroxide (LiOH) producer.

About the European Lithium share price

The European Lithium share price has gone on a rollercoaster ride over the past 12 months. Its shares fell heavily in March after reaching highs of around 8.6 cents the month before. During May, the company's share rocketed to 9 cents, and again nosedived to COVID-19 lows.

Since hitting a 52-week low of 3.5 cents in October, the European Lithium share price accelerated to 13 cents this month. Currently, its shares are swapping hands for 7.3 cents.

The post European Lithium (ASX:EUR) share price drops despite positive update appeared first on The Motley Fool Australia.

At the time of writing, the lithium miner's shares are up an astonishing 50% to 10 cents. It's worth noting that during midday trade, the European Lithium share price reached an intraday high of 13 cents.

What's shooting the European Lithium share price?

According to its release, European Lithium has welcomed the positive placement to raise $7 million through sophisticated investors. The offer price of 5 cents per share represents a steep discount on the current European Lithium share price. In addition to the take up offer, investors will also be issued one option for every 2 shares received. The exercise price for this option is 7.5 cents and will expire 3 years from the date of issue.

The company stated that the monies raised from the institutional placement will complement its proposed share purchase plan. The latter which is due to close this Friday, 22 January.

The funds will be allocated towards its exploration and development on its Wolfsberg Lithium Project in Austria. In addition, the company will seek to search for gold through its West Australian strategic tenement. Recent gold discoveries have been made by a number of companies within the North West Western Australian region.

European Lithium advised that the issuance of shares from the placement will be done without shareholder approval.

Words from the chair

European Lithium chair, Mr Tony Sage, touched on the company's prospects, saying:

We are excited by the huge support in the Placement shown by institutional and high net worth investors in Australia, Asia and Europe. We believe this reflects the positive market sentiment for battery metals. After a very challenging year we now see demand for lithium chemicals to support a very strong EV market which led to the recent lithium price rally.

The funds will also be used to explore our recently acquired gold project in the hottest region in Australia with De Gray, Azure, Artemis and Novo all finding success.

The post Why the European Lithium (ASX:EUR) share price is rocketing 50% today appeared first on The Motley Fool Australia.

Here is the state of play in the lithium industry during morning trade:

• The Argosy Minerals Limited (ASX: AGY) share price is up 20% to 32.5 cents.
• The Avz Minerals Ltd (ASX: AVZ) share price has climbed almost 17% to 28 cents.
• The European Lithium Ltd (ASX: EUR) share price is nearly 8% higher at 21 cents.
• The Galaxy Resources Limited (ASX: GXY) share price is up 11% to $3.20.
• The Kidman Resources Ltd (ASX: KDR) share price is 9% higher to $1.85.
• The Lepidico Ltd (ASX: LPD) share price has climbed 12.5% to 5.4 cents.
• The Lithium Australia NL (ASX: LIT) share price is 12.5% higher at 18 cents.
• The Mineral Resources Limited (ASX: MIN) share price is up 7% to $18.08.
• The Orocobre Limited (ASX: ORE) share price has pushed 5.5% higher to $6.65.
• The Pilbara Minerals Ltd (ASX: PLS) share price is 9% higher to 87 cents.

What happened?

It appears as though investors have flipped the risk-on switch overnight following the recovery in U.S. markets.

As the lithium miners are amongst the most risky shares on the market, they were heavily sold off during trade yesterday. But pleasingly for their shareholders, many of these shares have not only reversed these declines, but pushed even higher.

Should you buy the dip?

Whilst I am a big fan of some of these lithium miners and believe they have bright futures ahead of them, it is important to remember that they are some of the most volatile shares on the market. This makes them prone to strong gains in good times and sharp declines in bad times.

In light of this, I think they are largely unsuitable to the average investor. But for investors with a high tolerance for risk, I think it is hard to look beyond Galaxy Resources due to the strong free cash flow it is generating at its Mt Cattlin site.

The post The lithium miners have stormed higher today appeared first on The Motley Fool Australia.

Four shares that haven't been able to follow the market higher today are listed below. Here's why they have dropped lower:

The BT Investment Management Ltd (ASX: BTT) share price has fallen 3.5% to $10.73. The majority of this decline can be attributed to its shares going ex-dividend this morning. Eligible shareholders should expect to receive its partially franked 26 cents per share final dividend in their accounts on December 20.

The European Lithium Ltd (ASX: EUR) share price has tumbled 22% to 25 cents. This decline appears to be in response to yesterday's capital raising announcement. The company plans to raise $5 million through a placement at 22.5 cents per share. While this is a big discount to the last close price, only one month ago the lithium miner's shares were trading at 5 cents apiece.

The Nufarm Limited (ASX: NUF) share price is down almost 2% to $8.62 following the release of its annual general meeting presentation. Investors appear to be disappointed with the crop protection company's outlook. Due to a weak November, first-half EBIT is expected to be in the range of $70 million to $80 million.

The Pilbara Minerals Ltd (ASX: PLS) share price has continued it decline and is down a further 3% to 89.5 cents. A number of lithium miners continue to come under pressure from profit taking today following a sharp rise in their respective share prices over the last few weeks.

The post Why these 4 ASX shares dropped lower today appeared first on The Motley Fool Australia.

At the time of writing the lithium miner's shares are down 26.5% to 23.5 cents.

What happened?

Yesterday the company announced plans to raise up to $5 million through a share placement at a price of 22.5 cents per share.

Furthermore, it will issue one free attaching unquoted option for every four shares applied for under the placement and 14.4 million options to facilitators of the placement which are exercisable at 25 cents per share.

Whilst this is a sizeable discount to its last close price of 32 cents, it is worth noting that just one month ago the European Lithium share price was 5 cents.

Management intends to use the funds to expedite the definitive feasibility study drilling programme at its Wolfsberg Lithium Project in Austria. This is expected to help the company better understand the size and value of the deposit in zone two, which earlier drilling showed to be a very prospective area.

Should you invest?

I don't think European Lithium is ready to be invested in just yet. There's no doubt that the Wolfsberg Lithium Project has a lot of promise, but almost all of this has been built into its share price already.

I would suggest investors sit tight and watch on from the safety of the sidelines whilst its drilling programme is undertaken.

Other lithium shares to watch in 2018 include Lepidico Ltd (ASX: LPD) and Kidman Resources Ltd (ASX: KDR).

The post Why European Lithium Ltd shares crashed 26% lower today appeared first on The Motley Fool Australia.