European Metals (ASX: EMH) has received confirmation that its Cinovec lithium project in the Czech Republic has been approved for a government grant of up to €360 million.
The grant falls under the nation’s Strategic Investments for a Climate-Neutral Economy program and remains subject to final administrative steps before formal issuance.
European Metals said the commitment represents one of the largest direct project-level funding approvals for any critical raw materials development in the European Union.
Strong European and National Backing
Cinovec has been designated a Strategic Project by the European Commission under the EU Critical Raw Materials Act, providing accelerated permitting and access to potential funding via institutions such as the European Investment Bank.
The Czech government has also declared the project a Strategic Deposit, which prioritises permitting under the country’s construction framework.
Executive chair Keith Coughlan said the approval constitutes “a transformational milestone” for European Metals.
“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 European Union levels,” he added.
The grant, which is paid in Czeck koruna, allows for reimbursement of up to 35% of eligible capital expenditure via annual drawdowns aligned with project-status reports.
Project completion must occur no later than 31 December 2032, and each disbursement is subject to validation under EU state-aid rules.
Far-Reaching Investment Program
The Strategic Investments for a Climate-Neutral Economy program is designed to attract major investments in equipment, components, and critical raw materials that underpin Europe’s decarbonisation strategy.
Qualifying categories include lithium production and other key inputs for solar, wind, electrolyser, heat-pump, and carbon-capture technologies.
European Metals will complete the remaining administrative processes required for the formal grant-award decision, and integrate the grant into Cinovec’s project-finance structure while coordinating eligible-cost planning and reporting with the Czech Ministry of Industry and Trade.
Further updates will be provided once construction-readiness activities progress and outstanding approvals are finalised.
