European Metal holding Company to operate Cinovec Lithium Power Project in Czech Republic

Published: Jul 23, 2019 16:32

Save

European Metal Holdings has held preliminary discussions with potential customers and may begin operating the Cinovec lithium power project in the Czech Republic by mid-2022.

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.

"Click to enter the registration page

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business

Cars batteries cobalt lithium new energy

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

2 hours ago

Chery Group Sees 15.4% Sales Growth in August, Exports and New Energy Vehicles Surge

[Chery Group's August sales hit 280,000 units, up 15.4% YoY] In August 2026, Chery Group sold 280,128 vehicles, up 15.4% YoY. Of this total, the group exported 196,984 units, up 52.1% YoY, and sold 120,909 new energy vehicles, up 69.8% YoY, surpassing the 100,000-unit mark for the fifth consecutive month.

2 hours ago

SMM Daily Review: Spot Prices for Lithium Carbonate Fluctuated Higher on 1 September

Today, SMM’s spot prices for battery-grade lithium carbonate fluctuated higher compared with the previous working day. The lithium carbonate 2701 contract opened lower today at 160,800 yuan per tonne. Following the opening, it quickly dipped to around 158,900 yuan per tonne, before bullish capital stepped in to drive a volatile rebound; during the morning session, prices fluctuated on a relatively firm note within the 160,500–162,500 yuan per tonne range, reaching a high of 162,900 yuan per tonne; Around midday, bulls and bears engaged in a seesaw battle above the moving average line; in the afternoon, short sellers intensified their selling pressure, causing the price to plummet to 157,200 yuan per tonne, after which it consolidated weakly at lower levels. Although there were minor rebounds during this period, they failed to break through the resistance of the moving average line. The market weakened again towards the close, eventually closing down 1.64 per cent at 157,900 yuan per tonne, with open interest increasing by 1,885 contracts. In the spot market, downstream material manufacturers took the opportunity to buy on the dip, with both enquiries and actual transactions remaining relatively active; upstream lithium salt producers saw a slight slowdown in the pace of spot sales, whilst deliveries under long-term contracts began in earnest at the start of the month. Furthermore, some lithium salt producers maintained spot quotations at 165,000 yuan per tonne or higher. Overall, a divergence in price expectations between upstream and downstream players persists.

2 hours ago

6 hours ago

[SMM Analysis]Higher Cobalt Tetroxide Production Lifted China’s Cobalt Sulphate Output by Nearly 7% MoM in August

6 hours ago