EU gives $36M boost to Czech Cinovec lithium project

The European Union has confirmed a $36 million grant to advance the Cinovec lithium project in the Czech Republic, a key part of the bloc’s clean energy strategy.

European Metals Holdings (EMH), the project’s majority shareholder, announced that the funding will come from the EU’s Just Transition Fund and will be overseen by the Czech Ministry of Environment.

The funds are contingent on the project’s environmental impact assessment (EIA), which must be submitted and approved by the Czech environment ministry by year-end.

EMH said the grant will help accelerate development and potentially increase the project’s annual lithium production by unlocking economies of scale. Executive chairman Keith Coughlan said the financing would allow the company to “fast-track a number of critical path items” as the project moves toward construction.

Cinovec, located in the Krusné Hory Mountains near the German border, is the largest hard rock lithium resource in the European Union. It was declared a Strategic Project under the EU Critical Raw Materials Act in March and also recognized as a Strategic Deposit by the Czech government. These designations are expected to streamline permitting and secure support from EU institutions.

EMH has appointed engineering firm DRA Global Limited to complete a definitive feasibility study by the end of 2025. If environmental approval is granted, construction permits could follow within 24 months.

Separetely, EMH posted its March quarter report, showing a cash balance of A$4.3 million and no debt as of the end of the first quarter. 

Cinovec remains central to Europe’s strategy to secure domestic sources of critical raw materials, particularly lithium, which is vital for electric vehicle batteries and renewable energy storage.