European Metals Raises A$3.46m to Accelerate Europe’s Largest Lithium Project
European Metals Holdings has raised A$3.46 million through a discounted placement to fund the next phase of its Cinovec Lithium Project, a key European battery-grade lithium source. The company is advancing project financing and strategic partnerships following a positive Definitive Feasibility Study.
- A$3.46 million placement at A$0.32 per share, a 13.5% discount
- Funds earmarked for Cinovec Lithium Project development and working capital
- Cinovec project confirmed economically viable with 28+ year life
- Strategic partnerships with CEZ and EU/Czech government grants support progress
- Placement shares to settle and trade from late January 2026
Placement Details and Purpose
European Metals Holdings Limited (ASX, EMH) has successfully secured firm commitments for a placement raising approximately A$3.46 million before costs. The placement involves issuing around 10.8 million new shares at A$0.32 each, representing a 13.5% discount to the last traded price. Proceeds will be directed towards advancing the development of the Cinovec Lithium Project in the Czech Republic and supporting general working capital needs.
Strategic Importance of Cinovec
The Cinovec Lithium Project stands as Europe’s largest hard rock lithium deposit and is strategically vital for the continent’s electric vehicle (EV) and energy storage ambitions. With a Definitive Feasibility Study (DFS) confirming its economic viability, the project is set to produce 37,500 tonnes per annum of battery-grade lithium carbonate over a 28-plus year mine life. This output could supply over 900,000 EV batteries annually, meeting about 5.2% of the European Union’s projected lithium demand by 2030.
Backing from Governments and Strategic Partners
European Metals benefits from strong backing, including a 49% ownership stake in the project alongside CEZ a.s., a major Czech energy group. The project has been designated a Strategic Project under the EU’s Critical Raw Materials Act and a Strategic Deposit by the Czech Government. It has also attracted substantial grant funding, USD 36 million from the EU Just Transition Fund and up to EUR 360 million from the Czech Government, underscoring its critical role in Europe’s clean energy transition.
Next Steps and Market Positioning
Following the placement, European Metals is progressing discussions on project financing, including additional grants, commercial lenders, and potential strategic partners. The company is also moving towards finalising off-take agreements, which will be key to securing long-term revenue streams. The Cinovec processing plant is planned for the Prunéřov 1 Power Station site, leveraging existing infrastructure to optimise project economics.
Outlook
Executive Chairman Keith Coughlan expressed gratitude for shareholder support and welcomed new investors, highlighting the company’s confidence in delivering on its DFS and advancing the project towards production. As the global race for battery materials intensifies, Cinovec’s position as a European-sourced lithium supplier could prove pivotal in securing supply chains for EV manufacturers and energy storage developers.
Bottom Line?
European Metals’ latest capital raise sets the stage for critical financing milestones as Cinovec moves closer to becoming a cornerstone of Europe’s lithium supply.
Questions in the middle?
- How will European Metals structure its upcoming project financing and what partners will emerge?
- What progress is being made on securing off-take agreements with battery and EV manufacturers?
- How might evolving EU regulations and market demand impact Cinovec’s development timeline and economics?
