European Metals Holdings Limited (ASX: EMH) has delivered a substantial update on its Cinovec Lithium Project, marking another step forward in its quest to supply Europe with critical battery materials. The company has finalised its new processing plant site at the decommissioned Prunéřov Power Station (EPR1) in the Czech Republic. This decision is packed with strategic implications that could bolster the project's economics and sustainability profile.
EPR1 site in March 2024 after preparation. Administration building retained for offices.
Located in the Usti region, the EPR1 site is not only large but comes with significant existing infrastructure that European Metals plans to leverage. This includes established road and rail links, access to power, water, and gas utilities, and a rehabilitated land area ripe for development. Executive Chairman Keith Coughlan highlighted the advantages, noting the site’s alignment with the Czech government’s broader industrial transition from coal to green energy technologies.
The Prunéřov site, previously home to the largest coal-fired power station in the Czech Republic, has undergone extensive geotechnical surveys, showing it is ready for redevelopment with minimal additional preparation. The site's industrial legacy provides logistical and cost-saving synergies, including potential reductions in both capital expenditure (Capex) and operating expenditure (Opex).
“EPR1 offers us a unique blend of cost efficiency and sustainability,” Coughlan said. “This location strategically supports our aim to deliver low-carbon lithium products while optimising operational scalability.”
EPR1 isn’t just about cost. The location aligns with European Metals’ decarbonisation strategy. Solar installations planned for the region and a potential Small Modular Reactor (SMR) nearby could power the project with renewable and low-emission energy. These energy sources are expected to integrate with Cinovec’s operations, enhancing the project’s green credentials and positioning it as a cornerstone of Europe’s energy transition.
The broader sustainability impact is bolstered by the project's commitment to reusing a rehabilitated site and avoiding greenfield development, minimising its environmental footprint. By relocating the processing plant closer to the tailings storage area, European Metals also expects reduced logistics costs and emissions associated with material transport.
With the site secured, European Metals is now focused on updating its Definitive Feasibility Study (DFS). The new study will incorporate the EPR1 site and explore enhancements to project economics, including:
Results from the updated DFS are anticipated by mid-2025.
Adding to the project’s momentum is its application for Strategic Project Status under the European Commission’s Critical Raw Material Act (CRMA). If successful, this designation could unlock financing and expedite permitting processes. Given the criticality of lithium to Europe’s battery supply chain, Cinovec is well-positioned as a high-priority asset.
The relocation decision has received backing from local stakeholders, including the mayor of Kadaň and regional representative groups. The project's promise to revitalise the local economy by replacing lost coal industry jobs with high-tech, green energy roles has been well-received.
Cinovec, already the largest hard-rock lithium deposit in Europe, could play a transformative role in securing the continent's critical raw materials supply chain. With a measured and indicated resource base of over 400 million tonnes, containing 7.39 million tonnes of lithium carbonate equivalent (LCE), the project is strategically significant. The joint venture between European Metals (49%) and Czech energy giant CEZ (51%) further cements its place as a key driver of the Czech Republic’s clean energy transition.
Coughlan summed up the company’s ambition: “With these advancements, we are confident that Cinovec will play a key role in Europe’s lithium supply and contribute to the green energy transition.”
All eyes are now on the updated DFS and the European Commission's decision on Strategic Project Status. Meanwhile, the groundwork at EPR1 will continue, setting the stage for what could become a cornerstone project in Europe’s green industrial revolution.