European Metals’ Cinovec lithium project gains strategic status under EU CRM Act
European Metals’ (ASX: EMH) plans to develop the large Cinovec mine in the Czech Republic have received a boost with the European Union (EU) declaring it a “Strategic Project”.
The EU has recognised Cinovec, which contains the largest hard rock lithium resource in Europe, for its potential to become a significant supplier to the European electric vehicle market under the EU’s Critical Raw Materials (CRM) Act.
The application of Strategic Project status will add explicit support from European institutions including financial institutions and will also support and accelerate permitting, with time limits set out within the CRM.
Significant milestone
Executive chair Keith Coughlan said the designation of Strategic Project status for the Cinovec project was a significant milestone and represented confirmation of the advanced stage of its development.
“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.”
Lithium a key material
The CRM aims to strengthen the security of critical raw material supplies, reduce dependence on imports from third countries and support innovation in the sustainable sourcing of mineral resources.
It has identified lithium as a key raw material for the transition to a modern low-carbon economy, critical to the development of the automotive industry and the modernisation of the power sector.
Projects assigned the designation must have a credible timeframe and implement production volumes with the highest ESG credentials.
The CRM views these projects as essential for the green and digital transition, as well as for the resilience of the defence and aerospace sectors.
Czech designation
Earlier this month, the Cinovec mineral deposit was designated as a Strategic Deposit for the purposes of the Czech Construction Code.
The designation enables the developers to obtain certain permits and take actions to secure the development of the project without undue delay.
A Cinovec definitive feasibility study is progressing towards completion in mid-2025, with the company looking to complete an environmental impact assessment and submit it for approval by the end of 2025.