European Metals Holdings Stock Surges: Secures Potential €360 Million Grant

European Metals Holdings (LON: EHM) share price surged more than 60% on Friday after it said it has received promising news regarding its Cinovec Lithium Project.

Geomet s.r.o., a subsidiary of European Metals, has been informed of a potential grant award of up to €360 million (approximately £315 million) from the Czech Republic's “Strategic Investments for a Climate-Neutral Economy” program.

The grant, administered by the Ministry of Industry and Trade, is designed to bolster projects crucial to the transition towards a climate-neutral economy. The program specifically targets investments in equipment production, key components, and critical raw materials, including lithium. The markets interpreted this as a significant vote of confidence in the Cinovec project's strategic importance.

The final grant amount is subject to administrative processes and formal award, and may be less than the maximum €360 million. The funding will be disbursed as a special-purpose subsidy in Czech koruna (CZK), reimbursing documented eligible capital expenditure (“capex”) during project execution. Project completion is mandated by December 31, 2032.

Executive Chairman of European Metals, Keith Coughlan, hailed the grant as a “transformational milestone” for the company and the Cinovec Project. He emphasized that the potential €360 million commitment represents one of the largest direct project-level funding initiatives for critical raw materials within the European Union.

He added that the grant reaffirms the significant support at both the Czech Government and European Union levels, especially given the renewed positive outlook for lithium and strong geopolitical commitment to Critical Raw Material supply chain security.

The Cinovec Project has garnered recognition at both European and national levels. It has been declared a Strategic Project by the European Commission under the EU Critical Raw Materials Act, which facilitates accelerated permitting and funding eligibility.

Furthermore, the Czech Government has designated it a Strategic Deposit, streamlining permitting processes under the Czech Construction Code. Cinovec has also been awarded a USD 36 million grant from the EU Just Transition Fund, underscoring the EU's financial commitment.

Annual project-status reports will be required, detailing eligible costs, job creation, procurement activities, and production-capacity development. Grant payments will be made within 60 days of validated submission, subject to aid-intensity limits and annual caps. Supported assets and newly created jobs must be maintained for at least five years post-completion.