European Metals Holdings (EMH) is preparing for a defining year in 2025, with its flagship Cinovec Project in the Czech Republic emerging as a keystone in Europe’s green energy transition. Leveraging strategic financial support, including a pivotal partnership with CEZ Group, Cinovec is positioned to become Europe’s leading lithium supplier.
Cinovec: The Heart of Europe’s Lithium Future
Cinovec is not just the largest hard rock lithium deposit in Europe—it is the key to addressing the region’s “white gold rush.” Located near the German border, this project has a measured and indicated resource of over 7.39 million tonnes of lithium carbonate equivalent (LCE). It holds the promise of a secure, local lithium supply to power Europe’s EV and energy storage ambitions.
Jointly owned by EMH (49%) and CEZ Group (51%), Cinovec’s strategic importance is magnified by its alignment with the EU’s decarbonisation goals. With the European Union heavily reliant on imports for 87% of its lithium needs, Cinovec is set to become the beating heart of Europe’s lithium strategy.
Europe’s “White Gold Rush” and Surging Lithium Demand
The global push for electric vehicles and renewable energy has created unprecedented demand for lithium. In Europe alone, lithium requirements are projected to increase 15-fold by 2030, reaching 800,000 tonnes annually. This growth is spurred by the EU’s commitment to becoming lithium self-sufficient under the Critical Raw Materials Act (CRMA).
Cinovec is uniquely placed to meet this demand, with plans to supply lithium-based energy storage systems and battery production facilities across Europe. Regional support for the project has been strong, with Czech officials seeing it as a catalyst for transitioning the Usti region from coal dependency to high-tech sustainability.
The Czech government views Cinovec as a national strategic asset. Local and European officials alike see the deposit as central to creating a regional supply chain for lithium-based energy storage systems, reducing reliance on external suppliers like China and Australia. This push aligns perfectly with the EU’s Critical Raw Materials Act (CRMA), which prioritises domestic sourcing.
CEZ Group: The Powerhouse Behind Cinovec
An Energy Titan with Global Influence
CEZ Group is the Czech Republic’s largest energy company and a leading force in Central Europe, boasting annual revenues of €9.97 billion and 28,000 employees. With expertise spanning nuclear, solar, and battery technologies, CEZ’s role as a 51% stakeholder in Cinovec offers unmatched operational and strategic advantages.
Expanding into Critical Minerals
By backing Cinovec, CEZ is expanding into critical minerals—a sector central to Europe’s energy transition. The partnership is aligned with CEZ’s ongoing initiatives in energy storage and electric vehicle infrastructure, including its leadership in e-mobility and EV charging stations across the Czech Republic.
Commitment to Sustainability
CEZ is committed to achieving carbon neutrality by 2040, a full decade ahead of the EU’s target. With plans to integrate renewable energy, including small modular nuclear reactors (SMRs) and solar installations near Cinovec, CEZ is ensuring the project meets the highest environmental and social governance (ESG) standards.
Financial Backing and Strategic Endorsements
EBRD Investment Secures Momentum
In a groundbreaking move in 2023, the European Bank for Reconstruction and Development (EBRD) committed €6 million to the Cinovec Project, marking its first-ever investment in lithium mining. The EBRD's involvement is more than just financial; it’s a strategic endorsement of Cinovec’s potential to reshape Europe’s battery supply chain.
The funds from the EBRD are earmarked for critical pre-development activities, including environmental assessments and advancing the definitive feasibility study (DFS), scheduled for mid-2025. Beyond financing, the EBRD brings a wealth of expertise in sustainable project development. As part of its due diligence, the EBRD engaged an international mining consultancy to conduct a technical review of Cinovec and ensure compliance with its stringent environmental and social governance (ESG) policies.
Keith Coughlan, EMH’s Executive Chairman, hailed the investment as a “strong vote of confidence in Cinovec,” underscoring its alignment with the EU’s ambitions to secure a sustainable supply chain for electric vehicle (EV) batteries. Similarly, EBRD’s Head of Natural Resources, Natalia Lacorzana, noted, “We are pleased to support Cinovec...on its path to become a responsibly mined source of battery-grade lithium for Europe.”
The EBRD’s stake in EMH (approximately 6% post-investment) strengthens its long-term involvement in the project and signals confidence to other institutional investors in Cinovec’s viability.
Just Transition Fund Grants Potential Boost
Cinovec’s designation as a Strategic Project under the European Union’s Just Transition Fund (JTF) represents another major milestone. This classification prioritises the project for grant funding aimed at accelerating Europe’s shift from carbon-intensive industries to sustainable energy solutions.
Under the JTF framework, Cinovec is eligible to apply for up to €49 million in non-repayable grants. These funds are expected to support essential early-stage infrastructure, including the development of twin declines for mine access, ancillary road networks, and logistical improvements at the processing site. Such advancements are critical for reducing the timeline to first ore production following the final investment decision.
Importantly, the JTF grants provide a non-dilutive funding mechanism, preserving value for existing shareholders. By leveraging these funds, EMH can offset early-stage capital expenditures while maintaining its focus on shareholder returns and sustainability.
This dual financial boost—backed by the EBRD’s investment and the JTF grants—underscores Cinovec’s strategic importance to both regional and European decarbonisation goals. Together, these endorsements position Cinovec as a model project in Europe’s push for clean energy leadership.
What Lies Ahead for CEZ and Cinovec
As Cinovec advances, CEZ's operational involvement will become increasingly critical. The relocation of the project’s processing plant to Prunéřov EPR1, a site supported by existing energy and transport infrastructure, reduces costs and environmental impact. Moreover, the planned integration of solar power and potential SMRs further reinforces the partnership’s sustainability goals.
With the DFS expected in mid-2025 and construction milestones on the horizon, CEZ’s deep expertise in energy systems, its leadership in critical minerals, and its robust political connections position the Cinovec Project for long-term success.
Prunéřov EPR1 site
Conclusion: Europe’s Lithium Leader
With CEZ’s operational expertise, financial backing from the EU and EBRD, and local community support, Cinovec is positioned to become Europe’s leading lithium supplier. As the project progresses, 2025 is shaping up to be the year that cements Cinovec’s role as a cornerstone of Europe’s energy future.
This article does not constitute financial advice. Readers should seek independent advice before making any investment decisions.
