EMH: European Metals Holdings surges as Czech Government approves up to €360m grant for Cinovec expansion

Key Highlights

• Czech Government approves up to €360 million in grant funding for EMH’s Cinovec Lithium Project
• One of the largest direct project-level funding commitments for a critical raw materials project within the EU
• Strong alignment with the European Union’s climate-neutral and Critical Raw Materials strategies
• Executive Chairman Keith Coughlan calls the award a “transformational milestone” for the company
• Grant solidifies Cinovec’s position as Europe’s flagship hard-rock lithium project
• Funding integrates into project financing ahead of construction-readiness activities
  
   

European Metals strengthens its strategic position with major government backing

European Metals Holdings Ltd (ASX: EMH) delivered one of its most significant announcements to date on Friday, confirming that the Czech Government has approved a grant of up to €360 million (A$645 million) to support development of the company’s flagship Cinovec Lithium Project. The award places EMH among a select group of critical raw material projects receiving direct financial support under the European Union’s climate-transition funding framework. 

The grant falls under the Czech Republic’s “Strategic Investments for a Climate-Neutral Economy” programme, designed to accelerate investment in essential technologies and supply chains required for Europe’s clean-energy transition. It is one of the largest direct commitments made toward a European lithium project and materially elevates Cinovec’s strategic importance within the EU.

While the final grant amount will be confirmed following the remaining administrative processes, the approval marks a decisive step forward for EMH as it advances Cinovec toward development.

“A transformational milestone” — Keith Coughlan

Executive Chairman Keith Coughlan described the award as a defining moment for the company’s future:

“This is a transformational milestone for European Metals and the Cinovec Project. The Czech Government’s award of a grant of up to EUR 360 million represents one of the largest direct project-level funding commitments to a critical raw materials project within the European Union.”

“Following the previously detailed formal recognition of the Project, the approval of such a significant financial contribution clearly demonstrates the support for and importance of Cinovec in the future of European electromobility.”

“Coming at a time of renewed positive outlook for lithium and strong geopolitical commitment to Critical Raw Material supply chain security, the grant confirms the significant support at both Czech Government and European Union levels.”

Coughlan’s comments highlight both the scale of the investment and the rapidly intensifying focus on lithium supply security amid Europe’s accelerating electric-vehicle manufacturing commitments.

Part of a broader wave of EU-level strategic backing

The Czech Government’s approval follows a series of high-level recognitions and funding wins:

Cinovec has already been:

• Declared a Strategic Project under the EU’s Critical Raw Materials Act, granting accelerated permitting and eligibility for EIB funding
• Designated a Strategic Deposit by the Czech Government, fast-tracking local development pathways
• Awarded USD 36 million from the EU Just Transition Fund earlier this year
  
   

These milestones, detailed in the company’s announcement, show the depth of EU and national commitment behind Cinovec. Combined with the new grant, EMH now has a powerful alignment of regulatory, financial and strategic support across Europe. 

How the €360m programme works

Key grant features:

• Maximum allocation: up to €360 million
• Aid intensity: up to 35 per cent of eligible project costs
• Form: special-purpose subsidy, reimbursing documented capex
• Payment cycle: annual drawdowns within 60 days of validated submission
• Completion deadline: 31 December 2032
  
   

The aid is designed to support rapid development of critical supply-chain assets including batteries, key components and raw materials, with lithium explicitly listed under EU Regulation 2024/1252. 

Importantly, the grant will be fully integrated into Cinovec’s project-finance structure, reducing capital-intensity and strengthening long-term economic metrics.

Cinovec: Europe’s largest hard-rock lithium resource

The announcement also reiterates the scale and importance of Cinovec:

• Measured resource: 53.3 Mt at 0.48% Li₂O
• Indicated resource: 360.2 Mt at 0.44% Li₂O
• Inferred resource: 294.7 Mt at 0.39% Li₂O
• Total: 7.39 million tonnes LCE
• Probable reserve: 34.5 Mt at 0.65% Li₂O for first 20 years of mining
  
   

This makes it the largest hard-rock lithium deposit in the European Union. 

The project is supported by extensive infrastructure, nearby rail links, power access and a central location for supplying Europe’s battery and automotive sectors.

What this means for investors

For shareholders, the grant significantly reduces financing risk and strengthens project economics at a time when lithium markets are regaining momentum.

The funding:

• decreases reliance on equity dilution
• enhances bankability
• accelerates EMH’s path toward final investment decision
• reinforces EMH’s position in Europe’s strategic supply chain

Given the EU’s ambition to secure internal lithium supply, Cinovec is positioned as a priority resource for decades to come.

European Metals Holdings Ltd (ASX: EMH) – Stock Price Snapshot

• Last Price: $0.43
• Change: +$0.19
• Percentage Move: +79.17%
• Volume: 5,287,044
• Market Cap: $97.42M
• PE Ratio: 0
• Dividend Yield: N/A
• 52-Week Range: $0.105 to $0.550
• 1-Year Return: +196.55%
• Ordinary Shares: 226.57M
  
   

What happens next

European Metals outlined several key steps:

• Completion of administrative processes to issue the formal grant decision
• Integration of the grant into the broader funding structure
• Ongoing coordination with the Czech Ministry of Industry and CzechInvest
• Finalisation of construction-readiness and permitting workstreams
  
   

EMH will release further updates in line with ASX disclosure requirements.