European Metals Holdings (ASX, AIM: EMH) saw its shares soar on Friday after securing a Czech government grant of up to €360 million ($417 million) for the Cinovec lithium project, one of Europe’s most strategically important critical minerals developments. The funding package is among the largest government commitments ever made to a mining project within the European Union.
Executive chair Keith Coughlan said the award reinforces Cinovec’s central role in Europe’s efforts to build a domestic electric vehicle (EV) supply chain. Recently designated a strategic asset under the EU’s Critical Raw Materials Act, Cinovec will now benefit from accelerated permitting and enhanced access to financing. The Czech government has also formally classified the site as a strategic deposit, further streamlining regulatory processes.
Located roughly 100 km northwest of Prague, Cinovec is home to the largest lithium resource in Europe and one of the world’s largest undeveloped tin deposits, according to the company. It previously received a $36 million grant from the EU’s Just Transition Fund as part of regional economic support initiatives.
Cinovec’s location near major German automotive hubs — home to factories operated by Mercedes-Benz, BMW, Volkswagen and Porsche — has strengthened its strategic appeal. Automakers across Europe are under growing regulatory pressure to expand electric vehicle production, increasing demand for locally sourced lithium for battery manufacturing.
Following the announcement, European Metals’ stock surged 58% in Sydney to A¢38 and climbed 70% in London by mid-afternoon trading, raising the company’s market capitalization to £46.13 million ($61 million).
