European Metals Holdings (EMH) saw its stock price soar on Monday after the Czech government declared its Cinovec lithium project a “strategic investment”. The announcement marks a major victory for the ASX-listed company, which has been working on the project since 2012.
Cinovec is one of the largest lithium deposits in the world and it is expected to become a major source of battery-grade lithium for electric vehicles in the near future. The Czech government’s decision to label the project “strategic” means that it will be eligible for various forms of state aid, including grants, subsidies, and tax breaks. This could significantly reduce the cost of developing the project and make it more attractive to potential investors.
The news sent EMH’s stock price up by more than 25%, with the company’s market capitalisation reaching A$1.2 billion. EMH CEO Keith Coughlan said the company was “delighted” with the news. “This is a major milestone for the Cinovec project,” he said. “It is a strong endorsement of the project and its potential to become a major source of battery-grade lithium for electric vehicles.” The Cinovec project is located in the Czech Republic, near the German border. It is estimated to contain more than 1.65 million tonnes of lithium carbonate equivalent (LCE), making it one of the largest lithium deposits in the world.
The project is expected to produce up to 30,000 tonnes of battery-grade lithium hydroxide per annum, which would make it one of the largest producers of lithium in Europe. The Czech government’s decision to label the project “strategic” means that it will be eligible for various forms of state aid, including grants, subsidies, and tax breaks. This could significantly reduce the cost of developing the project and make it more attractive to potential investors. The decision is also a major boost for the Czech government, which is keen to position itself as a leader in the development of green technologies.
It is hoped that the project will create hundreds of jobs in the region and attract billions of euros in investment. EMH has already secured a number of key agreements with the Czech government, including a long-term lease for the project site and a 25-year mining licence. The company is now working on a feasibility study for the project, which is expected to be completed by the end of 2021. The study will provide a detailed analysis of the project’s potential and will form the basis for a decision on whether to proceed with the development.
The news of the project’s “strategic” status is just the latest in a string of positive developments for EMH. The company recently secured a US$10 million investment from China’s Ganfeng Lithium, which is the world’s largest producer of lithium. The investment is expected to help fund the development of the project and will give Ganfeng a stake in the project. The Cinovec project is just one of several lithium projects that EMH is working on. The company also has projects in Serbia and Portugal, which are expected to come online in the coming years.
The news of the project’s “strategic” status is another major milestone for EMH and is likely to attract further investment in the company. It is clear that EMH is well positioned to become a major player in the global lithium market. With the Czech government’s endorsement, the company is now one step closer to achieving its goal.
