European Metals secures EBA funds for Czech lithium project

New York — European metals has secured a financing agreement with European Battery Alliance principal facilitator and organizer EIT InnoEnergy to support the construction and commercialization of its Cinovec lithium project in the Czech Republic.

The company said July 28 that, through the value-added services agreement, EIT InnoEnergy would provide support to source construction finance, secure grant funding from applicable EU, national or regional grant schemes, and assist in offtake introductions and negotiations.

The project, a joint venture between European Metals and utility CEZ, is the largest hard rock lithium deposit in Europe and was recently funded around Eur29 million ($34 million) to take it through to the construction decision.

European Metals Executive Chairman Keith Coughlan said the company and CEZ were looking forward to working with EIT InnoEnergy and their industrial and financial partners to deliver production at Cinovec, as well as "contribute to a sustainable supply chain for a world leading center for EV development and manufacture in Europe."

"The requirement for locally sourced raw materials for the e-mobility movement has become more apparent during COVID-19, and Cinovec is well positioned in close proximity to Europe's manufacturers. Over the coming months we look forward to commencing the definitive feasibility study work programs, and subsequent permitting and construction of Cinovec," he said.

EIT InnoEnergy CEO Diego Pavia said the company saw Cinovec as critical to the development of Europe's energy storage industry.

"It is the largest hard-rock lithium resource in Europe and the fourth largest globally, as such representing a strategic and accessible source of supply of a raw material critical to meeting the EU's climate goals of electrification of mobility and large-scale development of renewable energy storage," he said.

European Metals noted that the EU had recently approved the Green Stimulus Plan, including the investment of over Eur500 billion into a climate change plan including electric vehicles and renewable energy.

It said that, based on Cinovec's economics, long mine life and proximity to the key manufacturing centers in Europe leading the EV development, the project was "well positioned to work with EIT InnoEnergy and other European organizations to ensure timely development to assist in meeting the expected significant increase in this demand."

The EBA was launched by the European Commission in 2017 to create a competitive and sustainable battery cell manufacturing value chain in Europe.