Lithium Market Shifts as European Lithium Merges and Chilean State Takeover Looms

European Lithium reported a cash balance of about $296 million after selling shares in Critical Metals Corp, and the two companies are completing a merger that includes a $30 million acceleration plan for the Tanbreez rare‑earth project in Greenland. The firm also faces a legal dispute over a Ukrainian project while continuing exploration in Austria.

Separately, shares of Chilean lithium producer SQM fell about 2 % after investors reacted to a preliminary agreement that would transfer control of its Atacama brine operations to state‑owned copper miner Codelco from 2031. The deal leaves SQM as operator but changes future profit sharing, raising concerns about earnings outlook and prompting a broader dip in lithium‑related stocks.