Cinovec Lithium Project’s DFS Reveals $1.455B NPV and 37,500 tpa Production Capacity

Strategic Milestones for Cinovec

European Metals Holdings Limited (ASX – EMH) has delivered a landmark update on its Cinovec Lithium Project in the Czech Republic, underscoring its growing significance in Europe's electric vehicle supply chain. The quarter ending 31 December 2025 saw the company successfully complete a Definitive Feasibility Study (DFS), revealing robust economics and a long-life production profile for battery-grade lithium carbonate.

The DFS outlines a steady-state output of 37,500 tonnes per annum (tpa) of lithium carbonate, representing approximately 5.2% of the European Union's forecast lithium demand in 2030. This production capacity is sufficient to supply lithium for around 1.3 million 60kWh electric vehicle batteries annually, positioning Cinovec as a critical asset in the continent's transition to electromobility.

Robust Economics and Government Backing

Financially, the project boasts a pre-tax Net Present Value (NPV) at an 8% discount rate of USD 1.455 billion and an Internal Rate of Return (IRR) of 14.8% based on the first 23 years of a 27-year mine life. These figures provide a strong foundation for advancing project financing discussions and securing additional support from European stakeholders.

Complementing this, the Czech government has approved a substantial grant of up to €360 million under its “Strategic Investments for a Climate-neutral Economy” programme. This grant reflects the project's alignment with European Commission initiatives aimed at accelerating investments in critical raw materials essential for climate neutrality.

Environmental Progress and Funding

Following the quarter, European Metals submitted the full Environmental Impact Assessment (EIA) to the Czech Ministry of the Environment, a key regulatory milestone that completes the two-stage EIA process. This submission satisfies a critical condition for the EU Just Transition Fund grant of approximately EUR 33 million, further cementing the project's strategic importance and funding security.

These developments collectively bring the Cinovec Project closer to final permitting approvals and the commencement of fund drawdowns, setting the stage for a Final Investment Decision.

Corporate and Financial Updates

In parallel with project milestones, European Metals completed a capital raising of approximately A$3.46 million post-quarter, targeting high net worth and institutional investors. The proceeds will support ongoing project development and general working capital needs. The company also executed a short-term loan facility of $750,000 during the quarter, which is to be repaid from the recent capital raise.

Additionally, a change in company secretary was announced, with Carly Terzanidis appointed effective November 2025, reflecting ongoing corporate governance enhancements.

Strategic Positioning in European Lithium Supply

The Cinovec deposit is the largest hard rock lithium resource in Europe and the European Union, with a combined measured and indicated mineral resource exceeding 400 million tonnes and a declared ore reserve supporting over 26 years of mining. Its strategic location, robust infrastructure, and strong governmental and EU support position it as a cornerstone project for Europe's battery and electric vehicle industries.

European Metals’ partnership with Czech energy giant CEZ a.s., which holds a 51% stake in the operating entity Geomet s.r.o., further strengthens the project's integration with regional energy and industrial strategies.