In the Ore Mountains, lies an abundance of lithium deposits. Should the Czech Republic’s authorities embark on its extraction, the region of Usti nad Labem, as well as the country’s economy, could reap the benefits of this “white gold.” However, not everyone is enthused about such plans. The village of Cinovec, situated near the German-Czech border, holds a small yet significant fortune. This village, approximately 100 km northwest of Prague, is home to approximately three to five percent of the world’s lithium reserves, making it the largest lithium deposit in Europe.
Lithium mining has become an area of strategic investment in the Czech Republic, gaining immense importance in recent years, particularly in battery production. The transition to alternative energy sources and the advancement of electromobility heavily rely on lithium-based energy storage. Furthermore, the soaring prices of lithium make its extraction economically viable for the Czech Republic. The Czech Chamber of Commerce’s analysis reveals that the country has depleted its previous sources of economic growth, signaling potential stagnation in the near future. However, Prime Minister Petr Fiala remains hopeful that lithium mining could rejuvenate the Czech economy. In his vision for the country’s development over the next three decades, Fiala identified six strategic investment areas, with lithium mining and processing taking the spotlight.
Fiala emphasized the significance of lithium as a crucial raw material for electromobility, particularly for battery cells. He expressed the government’s commitment to initiating extraction as soon as possible, ideally by 2026.
The raw materials in the region are ample, with the potential to produce a million lithium batteries annually. Cinovec is situated in a mining region with a long history of extracting various ores since the 13th century, including tungsten and tin in the 1940s. In the 2010s, geological surveys unveiled substantial lithium reserves in the area, extending across the German-Czech border into Zinnwald, albeit to a lesser extent. Prague has already signed an agreement with the federal state of Saxony to explore potential cooperation in lithium mining. On the Czech side, the state-owned company Czech Energy Works (CEZ) will spearhead these efforts. Over a 25-year span of lithium extraction, it is estimated that a thousand miners will find employment in the region. Moreover, the construction plans for a gigafactory dedicated to electric vehicle battery production will generate new job opportunities and revenue. CEZ anticipates that mining this scarce resource could commence within four years.
The authorities in the Usti nad Labem region support the development of the lithium deposit, provided that the process adheres to strict environmental standards. Jan Schiller, head of the region’s administration and a member of the opposition party “Action of Dissatisfied Citizens” (ANO), considers lithium mining as an opportunity. However, he emphasizes the importance of establishing favorable conditions before commencing mining operations. The region still bears the consequences of coal mining, and any negative impact on living conditions must be justly compensated.
New possibilities or further resource extraction?
The Usti nad Labem region receives funding from the JTF, an EU fund dedicated to mitigating the consequences of coal mining cessation and facilitating economic restructuring in affected regions. It is anticipated that a portion of the fund’s resources will be allocated to further lithium project development.
Nonetheless, some experts caution against simply replacing coal mining with lithium extraction after the end of brown coal mining in the region. They recommend utilizing the funds from Brussels to invest in education and overall economic restructuring. Similar sentiments are echoed among the local population. Michal Koletzko, a professor at the Jan Evangelista Purkyne University in Usti nad Labem, staunchly opposes lithium mining in the region. Koletzko believes that lithium is not the right path and suggests focusing on fundamental changes to secure a new future for the region. He advocates for investing in areas that have the potential to not only provide an economic backbone but also transform the social composition and educational level of the population.
Concerns about negative environmental impact
Opinions among the residents of the Cinovec area are divided. A discussion held on September 7, 2023, in the nearby town of Dubi between local residents and CEZ representatives witnessed a packed hall, highlighting the significant concerns among villagers. Czech Radio reports that the primary concerns revolve around threats to water supply and deterioration of air quality due to the transportation of extracted raw materials. Like any non-renewable resource, lithium mining does have environmental consequences. In South America, where approximately 70% of the world’s lithium reserves are concentrated in the “lithium triangle” spanning Bolivia, Chile, and Argentina, the extraction of lithium-containing brine has resulted in a significant decline in groundwater levels in certain regions. Mining companies’ careless actions have also led to instances of air, water, and soil pollution. In Cinovec, lithium will be extracted from solid rock formations. Although this method is water-intensive and consumes more energy compared to brine extraction, it is considered less detrimental to the environment.
