Wedoany.com Report-Nov. 29, Geomet, the joint venture company owned 49% by European Metals Holdings and 51% by Czech energy group ČEZ, has been awarded a conditional grant of up to €360 million ($416.98 million) by the Czech government. The funding comes from the Ministry of Industry and Trade under the Strategic Investments for a Climate-Neutral Economy programme.

Geomet holds the mineral exploration licences awarded by the Czech State for the Cinovec lithium project.

The grant will support development of the Cinovec lithium project, Europe's largest hard-rock lithium resource, located in the northwest of the Czech Republic. The programme provides financial assistance to large-scale projects that produce or process critical raw materials and key components essential for the transition to a low-carbon economy. It operates in line with the European Commission's Temporary Crisis and Transition Framework.

Executive chairman of European Metals, Keith Coughlan, welcomed the decision: "This is a transformational milestone for European Metals and the Cinovec project. 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 EU."

"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 EU levels."

The Cinovec project has already been designated strategic under the EU Critical Raw Materials Act, granting it priority access to streamlined permitting procedures and additional financing options, including from the European Investment Bank. The Czech government has also classified the deposit as strategic, which accelerates approval processes under national law.

The final grant amount will be determined after completion of required administrative steps and may be lower than the announced maximum. Geomet, which holds the exploration licences and has secured a preliminary mining permit from the Czech Ministries of Environment and Industry, will now integrate the funding into the overall project finance package.

Next phases include finalising the formal grant agreement, detailed planning of eligible expenditures in cooperation with the Ministry and CzechInvest, and advancing remaining construction-related approvals. The support is expected to play a key role in moving Cinovec toward full development and future production of battery-grade lithium products for the European market.