European Metals Holdings Ltd (AIM:EMH, ASX:EMH, OTCQX:EMHLF) shares soared more than 60% higher in Friday's opening trades, after the firm announced that its 49%-owned Cinovec lithium project has been approved for a Czech government grant of up to €360 million.
The award, subject to final administrative steps, is under the "Strategic Investments for a Climate-Neutral Economy" programme. The grant will fund eligible capital costs and support large-scale battery material production.
Cinovec has already received €36 million from the EU Just Transition Fund and has been declared a Strategic Project under the EU Critical Raw Materials Act. These designations provide access to accelerated permitting and EU-level financial support, it noted.
The maximum funding represents up to 35% of eligible costs. Payments will be made annually, with project completion required by the end of 2032. The grant enhances Cinovec’s integration into EU energy security and supply chain goals.
“This is a transformational milestone for European Metals and the Cinovec Project,” said Keith Coughlan, executive chair.
"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."
Coughlan also highlighted that it 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," he said.
In London, European Metals shares were up around 50% at 18.65p, having seen as high as 23p in early exchanges.