European Metals Holdings Ltd (AIM:EMH, ASX:EMH, OTCQX:EMHLF) has released a Definitive Feasibility Study (DFS) for its Cinovec Lithium Project in the Czech Republic, outlining a long-life, battery-grade lithium carbonate operation positioned to service Europe’s EV and energy-storage supply chain.
The study was prepared by DRA Global (processing, including Front-End Comminution and Beneficiation and the Lithium Chemical Plant), Bara Consulting (mining) and a group of specialist engineering, logistics, environmental and permitting consultants. Czech partners, including CEZ, also contributed site and regulatory inputs.
Cinovec’s location with proximity to gigafactories/OEMs either operating, under construction, or planned within the EU.
37,500 tpa steady-state output flagged
The DFS outlines steady-state (excluding ramp up/ramp down) production of 37,500 tonnes per annum (tpa) of battery-grade lithium carbonate (Li₂CO₃).
This output equates to about 5.2% of projected EU demand in 2030 and is sufficient for up to 1,300,000 EV batteries annually based on 60 kWh packs.
26+ year mine life underpinned by JORC resource and reserve
Cinovec’s DFS is built around an operating life of 26+ years, supported by:
- JORC Resource: 747.54 Mt @ 0.19% Li (0.40% Li₂O), equating to 7.45 Mt LCE
- JORC Reserve: 54.40 Mt @ 0.27% Li (0.58% Li₂O), equating to 145,000 t contained Li
The Company flagged expansion optionality beyond the defined reserve case.
Economics: US$1.455bn NPV at flat US$26,000/t assumption
Using a flat US$26,000/t lithium carbonate price assumption, European Metals reported DFS economics based on the first 23 years of a full 27-year life-of-mine schedule (unlevered, inclusive of grants and excluding inferred resources):
- Pre-tax NPV (8%): US$1.455 billion
- Pre-tax IRR: 14.8%
- LOM C1 costs: US$12,621/t
- LOM AISC: US$13,879/t
The Company noted the price assumption reflects a long-term incentive price and is above current Chinese spot pricing referenced in its DFS cautionary commentary.
CAPEX: US$1.72bn initial, US$0.498bn sustaining
The DFS estimates:
- Initial CAPEX: US$1.72 billion (including contingency and net of approved grants)
- Sustaining CAPEX (life of mine): US$0.498 billion
Government grants: up to EUR 360m plus US$36m EU fund
European Metals also pointed to approved support of:
- Up to EUR 360 million Czech Government grant
- US$36 million EU Just Transition Fund grant
Integrated mine-to-chemical plant development plan
The DFS describes a vertically integrated development comprising an underground mine, Prunéřov beneficiation, a lithium chemical plant and supporting utilities and transport infrastructure.
The project’s ESG framework aligns with EU CRMA expectations and financing standards including the Equator Principles and IFC guidance.
Next steps: financing, offtake and further EU engagement
With DFS completion, the Company said it will progress several workstreams, including:
- EU stakeholder engagement for additional grant and debt support
- formal project financing discussions
- finalising advanced offtake negotiations
Location: within reach of EU battery and auto manufacturing corridor
European Metals said Cinovec is located within the European EV and battery manufacturing corridor, about 200–350 kilometres from multiple gigafactories operating, under construction or planned. It also highlighted Central Europe’s established auto manufacturing footprint, noting 22 car plants within 400 km of Prague and more than 8 million vehicles produced in the wider region annually.