The Carinthian state government in Austria has approved an exemption for Critical Metals’ Wolfsberg lithium project from a full-scale EIA.

This decision was announced after an intensive examination and is critical to establishing a European battery supply chain supporting electromobility.

The EIA authority's comprehensive review encompassed various aspects of the Wolfsberg project, including underground mining, surface facilities, energy supply and environmental interactions.

Experts from multiple disciplines conducted the audit, concluding that the project's limited surface impact and thorough planning negated the need for an EIA.

Critical Metals CEO and executive 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.

“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.”

Critical Metals Corp's next steps for the Wolfsberg project involve securing financing for the commencement of mining activities and obtaining approvals for the plant and mining operations plan.

The exemption from conducting an EIA is expected to positively influence the project's financing prospects.

The decision by the EIA authority is based on the fact that the proposed underground mining operations, requiring less than ten hectares of above-ground space, fall within legal parameters that exempt them from the need for an EIA.

In July, Critical Metals formed a joint venture with the Obeikan Group to construct a lithium hydroxide processing plant in Saudi Arabia to process lithium spodumene concentrate from the Wolfsberg lithium project.