Cinovec lithium project gains EU strategic status

Published 25/03/2025, 11:42
Cinovec lithium project gains EU strategic status

LONDON - European Metals Holdings Limited (ASX & AIM: EMH, OTCQX and OTCQB: EMHXY and EMHLF), the mineral exploration and development company, announced that the European Commission has officially designated its Cinovec Lithium Project as a Strategic Project under the Critical Raw Materials Act (CRMA). This distinction underscores the project’s role in supplying battery-grade lithium chemicals to the European battery supply chain and facilitating the continent’s transition to a low-carbon economy.

The CRMA, aimed at securing the supply of critical raw materials and reducing reliance on imports, recognizes the significance of lithium for the automotive industry and the modernization of the power sector. The Cinovec Project, which is the largest hard rock lithium deposit in the European Union, is now positioned to receive explicit support from European institutions, including potential financial backing.

The project’s Strategic Project status is expected to streamline and expedite the permitting process, with the Czech government and Geomet s.r.o., the 100%-owner of the project, required to agree on a binding permitting schedule. This designation also implies priority in permitting processes with shortened approval timelines, eligibility for public funding, and increased attractiveness to private investors.

Pavel Cyrani, Deputy Chairman of the Board of Directors of CEZ, a project partner, expressed approval of the European Commission’s decision, noting the project’s importance for the Czech Republic and the EU in achieving raw material and energy security goals. The project is anticipated to generate approximately 1,800 jobs, particularly benefiting regions transitioning away from coal.

Keith Coughlan, Executive Chairman of European Metals, remarked on the milestone, emphasizing the increased confidence in the project’s future permitting and financing. The formal support aligns with the project’s progress, as the definitive feasibility study is expected to be completed by mid-2025, followed by the Environmental Impact Assessment by the end of the same year.

The Cinovec Lithium Project is considered vital for the EU’s objectives on climate change and is central to the region’s green and digital transition, as well as the resilience of the defence and aerospace sectors. The project’s advancement is further enhanced by the EU’s push for supply security of critical raw materials for battery production.

This announcement was based on a press release statement from European Metals Holdings Limited.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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