In the Ore Mountains, a vast reserve of lithium is found. If the Czech Republic authorities proceed with its extraction, known as the “white gold,” it has the potential to boost the economy of both the country and the Usti nad Labem region. However, not everyone shares the same enthusiasm for these plans. The village of Cinovec, located near the German-Czech border, possesses a small yet valuable treasure. Situated approximately 100 km northwest of Prague, this village holds around three to five percent of the world’s lithium reserves, making it the largest lithium deposit in Europe.
Lithium mining has become a strategic investment area in the Czech Republic, gaining immense significance in recent years, particularly in the field of 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. According to an analysis conducted by the Czech Chamber of Commerce, the country has exhausted its previous sources of economic growth, which indicates potential stagnation in the upcoming years. However, Prime Minister Petr Fiala remains hopeful that lithium mining could breathe new life into the Czech economy. In his vision for the country’s development over the next thirty years, Fiala outlined six strategic investment areas, with lithium mining and processing receiving the most attention.
Fiala emphasized the pivotal role of lithium as a crucial raw material for electromobility, especially in battery cells. He stressed the government’s commitment to initiating extraction as soon as possible, ideally by 2026.
The region possesses sufficient raw materials to produce one 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 revealed significant lithium reserves in the area, extending across the German-Czech border into Zinnwald, albeit to a lesser extent. Prague has already entered into 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 period of lithium extraction, it is estimated that a thousand miners will find employment in the region. Additionally, the construction of 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 it adheres to stringent environmental standards. Jan Schiller, head of the region’s administration and a member of the opposition party “Action of Dissatisfied Citizens” (ANO), views lithium mining as an opportunity. However, he underscores 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 adequately compensated.
The prospect of new opportunities or further resource extraction?
The Usti nad Labem region receives funding from the JTF, an EU fund dedicated to mitigating the consequences of ending coal mining and facilitating economic restructuring in affected regions. It is expected that a portion of the fund’s resources will be allocated to further develop the lithium project.
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. On September 7, 2023, a discussion was held in the nearby town of Dubi between local residents and representatives of CEZ, and the venue was filled to capacity. Czech Radio reports that the primary concerns among villagers revolve around threats to the 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 caused a significant decline in groundwater levels in certain regions. Careless actions by mining companies have also resulted in instances of air, water, and soil pollution. In Cinovec, lithium will be extracted from solid rock formations. While this method is water-intensive and consumes more energy compared to brine extraction
