How Will $36M EU Grant Accelerate European Metals’ Cinovec Lithium Project?

Strategic EU Funding Boosts Cinovec

European Metals Holdings Limited has secured a significant financial endorsement for its Cinovec Lithium Project with the approval of a USD 36 million grant from the European Union’s Just Transition Fund. This non-dilutive funding underscores the project's strategic importance in the EU’s clean energy transition and its role in securing critical raw materials for battery production.

The grant, awarded by the Czech managing authority of the fund, is contingent upon the submission and approval of the project's Environmental Impact Assessment (EIA) by mid-2026. This milestone will be pivotal in unlocking the funds and advancing the project towards construction and production.

Progress on Feasibility and Permitting

During the quarter ending June 30, 2025, European Metals continued to make headway on the Definitive Feasibility Study (DFS), led by DRA Global. The study incorporates enhanced production scenarios that aim to increase ore processing rates without expanding the mine’s surface footprint, reflecting a focus on operational efficiency and environmental sensitivity.

Preparations for the Environmental Impact Assessment submission are well underway, aligning with the conditions tied to the EU grant and Czech regulatory requirements. The project’s recognition as a strategic asset by both the Czech government and the EU facilitates a supportive permitting environment, which is critical for timely development.

Financial Position and Corporate Updates

European Metals reported cash outflows of $2.582 million during the quarter, primarily related to DFS expenditures. The company’s cash position stood at just under $1 million at the end of June, highlighting the need for prudent financial management as the project advances.

Post-quarter, the company announced a change in company secretary, with Sujana Karthik appointed effective mid-July, signaling ongoing corporate governance evolution as the project scales.

Cinovec’s Strategic Role in Europe’s Lithium Supply

The Cinovec deposit is the largest hard rock lithium resource in Europe and ranks among the top globally. Its proximity to European industrial hubs and existing infrastructure enhances its attractiveness as a secure lithium source amid rising demand driven by electric vehicle and battery manufacturing growth.

Ownership of the project is shared between European Metals and CEZ, a major Czech energy group, further embedding Cinovec within the region’s energy and industrial strategy. The project’s designation as a Strategic Project under the EU Critical Raw Materials Act reinforces its long-term significance.