How European Metals’ Cinovec DFS Positions Europe for Lithium Supply Security

Strategic European Lithium Supply

European Metals Holdings Limited (EMH) has published the Definitive Feasibility Study (DFS) for its Cinovec Lithium Project in the Czech Republic, confirming the project as a cornerstone for Europe's battery-grade lithium supply. The study highlights a 27-year mine life with steady-state production of 37,500 tonnes per annum of battery-grade lithium carbonate, positioning Cinovec as a key supplier to the rapidly growing European electric vehicle (EV) and energy storage markets.

Located near the Czech-German border, Cinovec hosts Europe's largest hard-rock lithium resource and one of the world's largest non-brine lithium deposits. The project benefits from its proximity to multiple European gigafactories and automotive manufacturing hubs within 200–350 km, offering logistical advantages and reduced supply chain emissions.

Robust Economics Underpinning Long-Life Operation

The DFS outlines robust project economics based on a lithium carbonate price of US$26,000 per tonne. It reports a pre-tax net present value (NPV) at an 8% discount rate of US$1.455 billion and an internal rate of return (IRR) of 14.8%. The initial capital expenditure (CAPEX) is estimated at US$1.72 billion net of approved government grants, with sustaining CAPEX over the life of mine (LOM) at US$0.498 billion.

Operating costs are competitive, with a life-of-mine all-in sustaining cost (AISC) of US$13,879 per tonne of lithium carbonate. The project’s vertically integrated design encompasses underground mining, beneficiation, and a lithium chemical plant, all located within the Czech Republic, ensuring supply chain security and alignment with European Union (EU) critical raw materials policies.

Strong Government and Institutional Support

Significant government backing enhances the project’s viability, including approval for up to EUR 360 million in Czech Government grants and a US$36 million grant from the EU Just Transition Fund. The project is formally recognised under the EU’s Critical Raw Materials Act (CRMA) as a Strategic Project, facilitating streamlined permitting and access to strategic funding mechanisms.

EMH’s partnership with CEZ, a major Czech semi-government energy company, further strengthens the project’s position. Together, they are advancing discussions with European financial institutions, including the European Investment Bank and export credit agencies, to secure project financing. Off-take negotiations are well advanced with major European battery manufacturers and automotive original equipment manufacturers (OEMs), underpinning future revenue streams.

Environmental and Social Governance Alignment

The DFS embeds strong environmental, social, and governance (ESG) principles, aligning with EU CRMA requirements, the Equator Principles, and International Finance Corporation standards. The project’s design minimises environmental impact through underground mining, enclosed conveyors, rail logistics, and the use of filtered tailings storage. Extensive stakeholder engagement has been conducted with local communities, municipalities, and environmental groups to ensure social license and address concerns.

Environmental Impact Assessment (EIA) processes are underway with a unified report expected to be submitted by the end of 2025, covering all major project components. The project’s location on a former coal-fired power station site supports regional economic transformation and aligns with the Czech government’s strategy to repurpose former coal industry sites.

Next Steps Toward Final Investment Decision

With the DFS complete, European Metals is accelerating key workstreams including EU and Czech government engagement for additional grants and strategic debt, formal project financing discussions, and finalisation of binding off-take agreements. Preparations for the Final Investment Decision (FID) include front-end engineering design, early works packages, contractor prequalification, and detailed project execution modelling.

The project’s strategic location, robust economics, and strong institutional support position Cinovec as a vital European lithium source amid growing global demand for battery materials. However, securing full project financing and regulatory approvals remain critical milestones ahead.