European Metals Holdings (ASX, AIM:EMH) shares jumped on Friday after the company secured a Czech government grant of up to €360 million ($417 million) for its 49% owned Cinovec lithium project.
The funding ranks among the largest government commitments to a mining development in the EU. Executive chair Keith Coughlan said the decision underscores Cinovec’s role in Europe’s push to build its electric vehicle supply chain.
Cinovec has been recognized as a strategic asset under the EU Critical Raw Materials Act, giving it access to faster permitting and financing. The Czech government has also designated it a strategic deposit, streamlining approvals.
The mine site lies about 100 km northwest of Prague and previously won a $36 million grant from the EU’s Just Transition Fund.
Cinovec’s proximity to car factories in Germany owned by Mercedes, BMW, Volkswagen and Porsche has been a big selling point. Car manufacturers in Europe face rising regulatory pressure to expand production of electric vehicles, which are powered by lithium-ion batteries.
European Metals closed 58% higher in Sydney at A$0.38 and climbed 70% in London by mid-afternoon, lifting its market value to £46.13 million ($61 million).
