LONDON (ShareCast) - (Sharecast News) - European Metals Holdings said on Friday that it has secured approval for a Czech government grant of up to €360m to support the development of its Cinovec lithium project, marking one of the largest direct public funding commitments for a critical raw materials asset within the European Union.
The AIM-traded firm said the award remained subject to the completion of administrative processes, after which a formal grant decision would be issued.

It said the final grant amount could be less than the maximum allocation.

The funding fell under the Czech Republic's 'Strategic Investments for a Climate-Neutral Economy' programme, which supports major projects tied to the clean-energy supply chain.

It said the initiative aligned with the European Commission's Temporary Crisis and Transition Framework and aimed to accelerate investments in equipment, components and critical raw materials essential for Europe's energy transition.

Eligible support could reach an aid intensity of up to 35% of qualifying project costs, with funds reimbursed against documented capital expenditure.

Executive chairman Keith Coughlan described the approval as a pivotal step for the company and the project.

"This is a transformational milestone for European Metals and the Cinovec Project," he said.

"The Czech government's award of a grant of up to €360m represents one of the largest direct project-level funding commitments to a critical raw materials project within the European Union.

"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."

Cinovec, located on the Czech-German border, is regarded as a strategically important lithium resource within Europe's battery and automotive value chain.

The project had been declared a Strategic Project by the European Commission under the EU Critical Raw Materials Act, designated a Strategic Deposit by the Czech government and previously awarded a $36m grant from the EU Just Transition Fund.

EMH said the designations eased permitting, improved access to financing and confirmed political support for advancing domestic lithium production.

Following the formalisation of the grant, European Metals said it would integrate the funding into its project financing plan, coordinate with Czech authorities on reporting and eligible costs, and continue activities to prepare the project for construction.

Completion of administrative steps and final approvals were required before drawdowns could begin, with project completion mandated no later than 31 December 2032.

The company said further updates would be provided in line with regulatory disclosure requirements.

At 1140 GMT, shares in European Metals Holdings were up 59.92% at 19.99p.

Reporting by Josh White for Sharecast.com.

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