European Metals (ASX:EMH) has been awarded a €360 million ($639 million) grant for the development of the Cinovec Lithium Project in the Czech Republic.
Under the Czech Government’s Strategic Investments for a Climate-Neutral Economy program, the grant will support up to 35% of eligible project costs. The program is designed to support investments in the production and expansion of equipment, key components, and critical raw materials essential for the energy transition.
Subject to completing an administrative process, European Metals will integrate the grant into Cinovec’s project-finance structure. In conjunction, ongoing coordination with the Ministry of CzechInvest on eligible-cost planning and reporting will be carried out.
Upon completion, the company will finalise construction-readiness activities once remaining approvals are completed.
Executive Chairman Keith Coughlan says this represents one of the largest direct project-level funding commitments to a critical raw materials project within the EU.
“Coming at a time of renewed positive outlook for lithium and strong geopolitical commitment to Critical Raw Materials supply chain security, the grant confirms the significant support at both Czech Government and the European Union levels,” Coughlan says.
Cinovec has been formally recognised at the European and national levels as essential to Europe’s energy transition.
European Metals says it has been declared as a strategic project by the European Commission and is a designated strategic deposit by the Czech Government. The project has also received a US$36 million grant from the EU Just Transition Fund.
The Cinovec Project hosts among the largest lithium resources in Europe one of the largest undeveloped tin resources in the world.
European Metals is focused on becoming a sustainable European lithium supply chain with a low carbon footprint.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash
