European Metals Holdings Limited (ASX & AIM: EMH, OTCQX and OTCQB: EMHXY and EMHLF) (“European Metals” or the “Company”) is pleased to announce that the European Commission has declared Cinovec to be a Strategic Project under the recently implemented Critical Raw Materials Act (“CRMA”).
- Declaration confirms the importance of Cinovec in supplying battery grade lithium chemicals to the European battery supply chain.
- Strategic Project status will bring with it explicit support from European institutions, including financial institutions.
- Permitting will be brought within accelerated and simplified process and time limits set out within the CRMA.
The CRMA aims to strengthen security of critical raw material supplies, reduce dependence on imports from third countries, and support innovation in the sustainable sourcing of mineral resources. Lithium is a key raw material for the transition to a modern low-carbon economy, and critical for the development of the automotive industry and the modernisation of the power sector.
Strategic Project Status under the EU Critical Raw Materials Act
The designation of the Cinovec Project as a Strategic Project under the CRMA represents confirmation of the advanced stage of development of the Project. The definitive feasibility study (“DFS”) is progressing towards completion in mid-2025, with the Environmental Impact Assessment (“EIA”) to be completed and submitted for approval by the end of 2025.
Being designated a Strategic Project means that the Project is considered highly important for ensuring a secure and sustainable supply of critical raw materials in Europe. Such projects must have a credible timeframe and production volumes and have to be implemented with the highest ESG credentials. These projects are essential for the green and digital transition, as well as for the resilience of the defence and aerospace sectors. The Cinovec Project, containing the largest hard rock lithium resource in the EU by far, is vital to achieving the EU’s objectives on Climate Change.
The responsibility for meeting the permitting timelines set out in the CRMA rests with the Member State Government. Geomet s.r.o. (“Geomet”) as the 100%-owner of the Project and the Czech Government must now agree on a binding permitting schedule within the time frames set by the CRMA.
The developer, Geomet, is responsible for the timely submission of documentation, and the Government is responsible for the timely issuance of individual permits. Obtaining Strategic Project status offers several key advantages for developers, significantly facilitating and accelerating the exploration and extraction process within the EU.
The principal benefits Strategic Project status brings are:
Simplified Bureaucracy
- Harmonised permitting procedures across EU member states.
- Access to a single contact point ("one-stop-shop") to streamline administrative processes.
Accelerated Approval Processes
- Projects designated as strategic receive priority status in permitting processes.
- Shortened approval timelines for environmental and administrative clearances (maximum 24 months for mining projects and 12 months for processing projects).
Access to Funding
- • Eligibility for public funding, including grants and investments from programs such as InvestEU.
- Increased attractiveness to private investors.
- Potential financing from major European financial institutions, such as the European Investment Bank (“EIB”)
Support for Innovative Technologies
- Favorable conditions for research and development of new extraction and processing methods.
- Opportunities to participate in strategic partnerships under the European Raw Materials Alliance.
Secured Market and Stability
- Strategic Projects may obtain long-term supply agreements with key industrial sectors (e.g., battery production, electromobility, renewable energy).
- Participation in EU strategic value chains.
Protection Against Geopolitical Risks
- Potential use of EU protective measures, such as export restrictions on critical raw materials.
Pavel Cyrani, Deputy Chairman of the Board of Directors of our Project Partner, CEZ, commented: “We welcome the European Commission's decision, which confirms that the lithium project at Cínovec is of great importance to the Czech Republic and the European Union as a whole.
Lithium is a strategic raw material that the Czech Republic needs to meet its ambitious goals for raw material and energy security, the development of the automotive industry and the ongoing transition of coal regions into modern energy centres. The project for production of Czech lithium is one of the most important transition projects in the Ústí nad Labem Region.
We expect that it will bring approximately 1,800 jobs, which will be available, among others, to employees of the coal-fired power plants and mines that will be closing."
Keith Coughlan, Executive Chairman, commented: “The recognition by the European Commission of the importance of the Cinovec Project is a significant milestone in the development of the Project. We recently announced the formal declaration of Cinovec as a Strategic Deposit by the Czech government and this escalating formal support for the Project provides greater confidence in the future permitting and financing. In short, it brings the production of battery grade lithium chemicals from Cinovec one big step closer to fruition.”
Contact details:
David Tasker
T: +61 433 112 936
E: [email protected]
