Geomet, a joint venture between European Metals Holdings (49%) and CEZ (51%), has received a grant of up to €360m ($416.98m) from the Czech Government, pending completion of administrative procedures.
The funding, provided by the Czech Republic’s Ministry of Industry and Trade under the Strategic Investments for a Climate-Neutral Economy programme, will support the advancement of the company’s flagship Cinovec lithium project.
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The programme is designed to support significant investments in the production and expansion of equipment, key components and critical raw materials needed for the transition to a climate-neutral economy.
It aligns with the European Commission’s (EC) Temporary Crisis and Transition Framework and is intended to accelerate economic development and investment in strategic sectors.
The final grant amount will be confirmed upon the formal award and may be lower than the maximum of €360m.
European Metals executive chairman Keith Coughlan said: “This is a transformational milestone for European Metals and the Cinovec project. The Czech Government’s award of a grant of up to €360m represents one of the largest direct project-level funding commitments to a critical raw materials project within the EU.
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By GlobalData“Following the previously detailed formal recognition of the project, the approval of such a significant financial contribution clearly demonstrates the support for and importance of Cinovec in the future of European electromobility.
“Coming at a time of renewed positive outlook for lithium and strong geopolitical commitment to critical raw material supply chain security, the grant confirms the significant support at both Czech Government and EU levels.”
The Cinovec project has been declared a strategic initiative by the EC under the EU Critical Raw Materials Act.
This status provides access to accelerated permitting, funding eligibility through institutions such as the European Investment Bank and “one-stop-shop” regulatory processes.
The Czech Government has also designated Cinovec as a strategic deposit, which simplifies and prioritises its permitting process under the Czech Construction Code.
The programme supports manufacturing of key components for relevant equipment, as well as production or processing of critical raw materials identified in Regulation (EU) 2024/1252, including lithium.
Its objective is to catalyse rapid and large-scale investments to strengthen European energy security, bolster supply chain resilience and enhance industrial competitiveness.
The next steps for the Cinovec lithium project include completion of administrative processes to issue the formal grant-award decision, incorporation of the grant into Cinovec’s project finance structure, ongoing coordination with the Ministry and CzechInvest on eligible-cost planning and reporting, and finalisation of construction readiness activities once remaining approvals are completed.
Geomet holds the mineral exploration licences awarded by the Czech State for the Cinovec lithium project and has received a preliminary mining permit from both the Ministry of Environment and the Ministry of Industry.
