SMM7, March 23: European Metal holding Company has held preliminary discussions with potential customers and may begin operating the Cinovec lithium power project in the Czech Republic in mid-2022.
Czech utility CEZ, which has a 70 per cent stake, last week agreed to a convertible loan of 2 million euros ($2.2 million) to EMH, paving the way for it to become EMH's largest shareholder.
European Metals companies listed in London and Australia control exploration licenses for the Cinovec Lithium / Tin Project in the Czech Republic, which is considered to be the largest lithium deposit in Europe. It could help CEZ switch to renewable energy and supply products to the electric car industry in Europe.
It is understood that CEZ loans account for only a small portion of total capital expenditure, which CEZ executives say is an encouraging commitment, while CEZ has conducted due diligence on the project.
CEZ can convert principal to stock before a convertible loan matures. Czech Prime Minister Andre Babbitz (Andrej Babis) has backed a deal that could turn out to be a good mining project.
European Metals is conducting a clear feasibility study and says it can start construction by mid-2020, which is expected to take two years.
Coughlan said the CEZ loan would make it easier to invest in the project and had preliminary discussions with buyers, including carmakers and battery makers.
The EU is keen to shorten the supply chain, focus on strategic minerals and focus on the development and supply of the electric vehicle industry.
SMM believes that Europe, as one of the most important new energy vehicle markets in the world, its industrial chain is also constantly expanding and improving. Sales of electric vehicles in Europe were about 430000 in 2018, up 41% from a year earlier. Data predict that demand for battery-powered vehicles in Europe is expected to reach 600000 by 2020 and nearly 1 million by 2022. In the face of huge market demand, the strategic significance of battery raw materials is self-evident. The cooperation between EMH and CEZ not only represents the further extension of the two companies in their current business areas, but also provides the possibility for the re-division of the industrial chain pattern of the global new energy market.
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