Australian European Lithium Limited (ASX: EUR) has announced the signing of a binding agreement to acquire 100% of Velta Holding, a US-based titanium company whose production and mining base is located primarily in central Ukraine. The companies position the transaction as a strategic move: European Lithium is expanding its focus from lithium to critical raw materials, while Velta gains a public platform and resources to develop a vertically integrated value chain—from mining to titanium metal, powders, and finished components.
Transaction structure and the “price” of entering titanium
According to the ASX announcement, European Lithium will acquire Velta on an all-scrip basis, paying with its own shares. Approximately 173 million fully paid ordinary shares of European Lithium will be issued and transferred to Velta’s existing shareholders following completion of due diligence and satisfaction of customary closing conditions.
The market reaction was muted: following the announcement, EUR shares declined (public market feeds that day cited a drop of around 5–7%). Based on an indicative share price range of ~AUD 0.28–0.29 on the announcement day, the implied “paper” value of the consideration package (173m × ~0.28–0.29) is approximately ~AUD 48–50 million. This is not the final “valuation” of Velta, but a snapshot market equivalent at a specific point in time: in all-scrip transactions, the implied value fluctuates with the acquirer’s share price until closing.
Why it matters: a strategic titanium play
European Lithium explicitly refers to Velta as a “platform” for growth in the titanium segment and adjacent critical materials used in defence, aerospace, energy, high-tech manufacturing, and construction. The rationale is clear: titanium supply chains are among the most geopolitically sensitive, and Western companies have long sought to diversify sources of raw materials and processing while reducing dependence on higher-risk jurisdictions.
The company also highlights its interest in an integrated production chain—from ilmenite mining and processing to the manufacture of titanium powders for additive manufacturing (3D printing) and finished components—targeting higher-margin products and a more resilient business model than concentrate sales.
Velta: Ukrainian base, export markets, and a value-added focus
In ASX materials, Velta is described as a US-based company with operations primarily in central Ukraine, with existing mining, beneficiation, and processing facilities (including references to the Burzulivsky mining and processing complex and the Likarivskoye deposit), proprietary technologies, and logistics. The company also notes that Velta estimates its share at approximately ~2% of the global titanium feedstock market.
Despite the ongoing war, Velta emphasizes that it has maintained export markets and operational stability; however, further investment programs and capacity expansion will depend on the security environment and completion of the transaction.
Velta has long publicly promoted a transition from a raw-materials model to value-added titanium production. In the context of the deal, Velta Holding CEO Andrii Brodskyi speaks of initiatives prepared over the past decade focused on horizontal and vertical integration, with an emphasis on titanium metal and other critical materials.
The US angle: DFC, the “minerals” track, and $240+ million in projects
Another important dimension is the US context. In autumn 2025, Velta publicly reported presenting investment projects to representatives of the U.S. International Development Finance Corporation (DFC) and the American-Ukrainian Investment Fund as part of a recovery portfolio, outlining a CRM (Critical Raw Materials) cluster with planned investments of approximately $243 million over four years.
Ukrainian and international media also reported that Velta’s assets—specifically the Burzulivske and Likarivske deposits—were among the first sites visited by a US delegation within the “minerals” cooperation track. The ASX release further notes that Velta is included on the list of priority projects under the US–Ukraine Mineral Resources Agreement (as phrased in the company’s announcement).
Technology layer: powders, 3D printing, and medical implants
One of the most technology-driven elements of Velta’s story is the development of titanium powder and downstream products. The company has publicly stated its intention to commercially produce and distribute titanium medical implants, manufactured using additive technologies and its proprietary powder process, positioning this as a step toward a fully integrated titanium operation. Other materials also cite data on ilmenite production dynamics and planned capacities, which are relevant for assessing the upstream side of the value chain.
Why European Lithium can execute: the Critical Metals stake and liquidity
At the time of the announcement, European Lithium highlighted another factor supporting the strategy—a significant stake in Critical Metals: 48,036,338 shares (44.982%), which the company valued at approximately $879.1 million as of the close on 26 January 2026 (based on a share price of $18.30), with a caveat regarding market volatility. This asset has already featured in the news flow (including potential partial sell-downs), providing European Lithium with additional liquidity and financing options for its diversification strategy.
Deal risks: security, conditions, and market volatility
Key risks are explicitly stated in the company’s materials: closing is subject to due diligence and customary conditions, while any plans to scale production in Ukraine depend on the security environment. There is also valuation risk inherent in an all-scrip structure—significant movements in EUR’s share price will change the effective consideration value.
What it means for Ukraine: a signal on critical materials—without illusions
If the transaction is successfully completed, it would be a notable case: a public Australian company entering Ukraine’s titanium space at a time when critical raw materials are increasingly linked to reconstruction, defence, and Western supply chains. At the same time, the companies remain cautious in their wording on CAPEX and expansion timelines—the war factor has not disappeared and is embedded in all corporate disclaimers.
If you’d like, I can adapt this into an InVenture-style long-read (with a clear “what happened / why it matters / what’s next” lead), add a dedicated section on the global titanium market and defence/aerospace demand, and include a clean implied valuation calculation in AUD/USD tailored to your editorial format.
