Cinovec Lithium Project Secures Key Rezoning and €360 Million Grant Boost

Rezoning Approval Unlocks Project Development

European Metals Holdings Limited (ASX – EMH) has reached a pivotal milestone with the Ústí nad Labem Regional Assembly granting the much-anticipated rezoning approval for the Cinovec Lithium Project. This regulatory green light defines the project’s mining and processing areas, as well as corridors for essential utilities such as water, electricity, and gas. The approval follows a rigorous public consultation process, including hearings and submissions, underscoring the project's transparency and community engagement.

Robust Governmental Backing

The rezoning approval complements the substantial financial support Cinovec has secured. The Czech Government has committed up to €360 million under its Strategic Investments for a Climate-Neutral Economy programme, marking one of the largest direct funding commitments to a critical raw materials project within the European Union. This follows a prior €36 million grant from the EU Just Transition Fund, reinforcing Cinovec’s strategic importance in Europe’s energy transition and electromobility ambitions.

Strategic Designations Bolster Project Momentum

Cinovec’s designation as a Strategic Project under the EU Critical Raw Materials Act and as a Strategic Deposit by the Czech Government enhances permitting predictability and accelerates regulatory processes. These statuses provide the project with privileged access to funding institutions like the European Investment Bank and streamlined regulatory pathways, positioning Cinovec as a cornerstone for European lithium supply security.

Economic Viability and Production Outlook

The recently released Definitive Feasibility Study confirms Cinovec’s economic viability, forecasting steady-state production of 37,500 tonnes per annum of battery-grade lithium carbonate over a 28-plus year mine life. This output is projected to meet approximately 5.2% of the European Union’s lithium demand by 2030, sufficient to supply over 900,000 electric vehicle batteries annually. The project’s scale and longevity make it the largest hard rock lithium deposit within the EU.

Strategic Partnership with CEZ a.s.

European Metals holds a 49% stake in the project, with the majority 51% owned by CEZ a.s., a leading Czech energy group committed to decarbonisation and e-mobility. CEZ’s involvement brings significant regional expertise and aligns with its broader strategy to develop energy storage and battery manufacturing capabilities in Central Europe, further integrating Cinovec into the continent’s clean energy future.