Highlights

  • European Metals awarded a grant of up to EUR360M for the Cinovec lithium project.
  • Project recognised at EU and Czech national levels under strategic raw materials frameworks.
  • Funding covers up to 35% of eligible project costs in designated Czech regions.

European Metals Holdings Limited (LSE:EMH) announced that Geomet s.r.o., its subsidiary, has been informed of approval for a grant of up to EUR360M (approx. GBP315M) under the “Strategic Investments for a Climate-Neutral Economy” programme. The grant, administered by the Ministry of Industry and Trade of the Czech Republic, is intended to support development of the Cinovec Lithium Project. The final grant amount will be confirmed after administrative processes are completed.

The programme is designed to support large-scale investments in equipment, components, and critical raw materials required for climate-neutral technologies. It aligns with the European Commission's Temporary Crisis and Transition Framework and focuses on accelerating investment in strategic sectors.

Recognition at EU and National Levels

Cinovec has received multiple strategic recognitions:

  • EU Strategic Project: Declared under the EU Critical Raw Materials Act, allowing accelerated permitting and eligibility for funding from institutions including the European Investment Bank.
  • Czech Strategic Deposit: Designation simplifies and prioritises permitting under the Czech Construction Code.
  • EU Just Transition Fund: Previously awarded USD36M (CZK800M), reflecting EU financial participation in project development.

These milestones highlight the alignment of European and national frameworks with the development of Cinovec as a lithium source for the continent’s battery and automotive sectors.

Grant Structure and Funding Mechanism

The grant will cover up to 35% of eligible project costs in specified Czech cohesion regions, with annual drawdowns aligned to project-status reporting. Support will be provided as a special-purpose subsidy in CZK, reimbursing eligible capital expenditures. Assets funded under the programme must be maintained for at least five years, and newly created jobs must also be retained for the same period.

The Czech Government will formally approve each project following an assessment by the Ministry of Industry and Trade. Annual reports must include details on eligible costs, job creation, procurement activities, and production capacity development, with grant payments issued within 60 days of validation.

Cinovec Project Overview

Geomet s.r.o. controls the Cinovec exploration licenses, holding a preliminary mining permit. EMH owns 49% of Geomet, with CEZ a.s. holding 51%. Cinovec hosts a hard rock lithium resource of over 7.39M tonnes LCE, making it the largest deposit of its kind in Europe. The project includes a front-end comminution and beneficiation circuit (FECAB) and a lithium chemical plant (LCP), located near the Prunéřov 1 Power Station site.

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