European Lithium Limited (ASX: EUR) is the latest to join the trading halt of Australian-listed companies. The company is set to issue a response to the potential conclusion of an exploration joint venture with Dajin Resources Corp. and the granting of an exploration licence, both of which are being conducted in the Wolfsberg lithium project in Austria.
A trading halt is put in place to allow companies to make an announcement, such as the conclusion of an exploration joint venture and granting of an exploration licence, without the pressure of continuous trade and share movements that are common in the normal course of trading.
European Lithium Limited is focused on becoming a major supplier of lithium hydroxide, the primary component of lithium-ion batteries used in electric vehicles and electronics, for the European market. The Wolfsberg lithium project is part of the company’s strategy to produce European-sourced lithium hydroxide, which is a critical component of the electric and energy storage revolution taking place around the world.
European Lithium shares have continued to rise in the past three months, rising over 20% from 45 cents per share on the 20th of June to 57 cents per share as of the 5th of September. This upswing has been on the back of news and developments surrounding the Wolfsberg lithium project.
The trading halt will remain in place until there is an official announcement from the company or the Australian Securities Exchange, whichever comes first. The effects of this news on the share price of European Lithium will be hard to predict, with the lack of company announcements currently in play.