Helping Enable 'Europe's EV Supply Chain' - Tony Sage, CEO & Chairman of Critical Metals Corp

Critical Metals Corp is addressing the need for local supply sources of lithium products to support the growing electric vehicle (EV) market in Europe. It was formed in February 2024, as a result of the completion of a business combination between European Lithium Ltd, a mineral exploration company, and Sizzle Acquisition Corp.

It is the owner of the Wolfsberg Lithium Project in Austria.

"Europe is a long-time leader of EV adoption, and to meet this accelerating demand, reliable sources of lithium will be essential to the region’s green energy transition. As part of our overarching corporate strategy, Critical Metals Corp is positioning ourselves as a western focused supplier of critical materials to help further enable the transition to green energy, Tony Sage, CEO and Chairman of Critical Metals Corp, tells Auto Futures.

The company's efforts are focused on the development of the Wolfsberg Lithium Project located in Carinthia, Austria, which is approximately 270 kilometers south of Vienna.

Lithium deposit was discovered and explored by Minerex, an Austrian government company, between 1981 and 1987.

"The Wolfsberg Project is positioned in close proximity to large lithium import markets in Europe, such as Germany, Belgium, France, Italy and Spain, and planned battery projects in Hungary, Germany, Sweden and the United Kingdom," says Sage.

"Substantial exploration and development work has already been conducted by the previous owners including approx. 17,000m of drilling / 1,400m of underground decline, drives and crosscuts. We look forward building upon this foundation and advancing our development plans for this strategic and key asset for Europe’s EV supply chain," he adds.

Commercial Plans

In December 2022, Critical Metals Corp entered into a long-term Offtake Agreement with BMW to supply battery-grade lithium hydroxide  sourced from the Wolfsberg Lithium Project.

"In connection with the execution of the Offtake Agreement, BMW has agreed to make an advance payment of US$15.0 million to us to be repaid through equal set offs against battery grade lithium hydroxide delivered to BMW," says Sage.

The company also has plans to develop a lithium hydroxide plant in Saudi Arabia through a joint venture between its majority shareholder, European Lithium, and Obeikan Group.

"Currently, European Lithium and Obeikan are progressing with the incorporation of the JV, negotiation of commercial terms and completion of the shareholder agreement. Critical Metals Corp is expected to ultimately benefit from the JV between European Lithium and Obeikan," he explains.

A Stable Lithium Market

Over the last few years, the global lithium market has proven volatile. However Sage says the Wolfsberg Lithium Project is set to play a vital role in the development of a sutainable EV supply chain in Europe.

"We believe that while there has been a decline in the price recently, starting in 2026 or 2027 there will be a significant shortfall in the supply of lithium spodumene product and battery-grade lithium hydroxide. We think it’s imperative that Europe bring more key assets into production, such as our Wolfsberg Lithium Project, to support EV battery production to address the growing consumer demand for EVs."

Finally we asked him what the lithium market will be like by the end of the decade.

"Even by 2030, we still think there will be a need for more lithium production capacity. However, with the help of projects like the Wolfsberg Lithium Project, Critical Metals Corp believes the market will be more stable than it is today, which is better for producers, automakers, and importantly, the end-consumers of EVs," concludes Sage.