European Metal’s Cinovec project was approved as “strategic” by the European Commission’s Just Transition Fund (JTF), allowing the project to be allocated up to US$55M in development funding.  

The Czech-based Cinovec lithium project, currently under development by European Metals, aims to produce refined lithium hydroxide ultimately for the growing European EV battery market. The JTF is a fund set up by the European Commission to help develop industries and regions affected by energy transition directives, aiming to alleviate costs triggered by the move. The maximum amount European Metals can be allocated by the JTF would be Kč1.2Bn (approximately US$55M).  

The construction capital cost of the Cinovec project is estimated by European Metals to be US$643.8M. While US$55M, would cover just under 10% of projects capital requirements, the funding shows the continued push by the European Union towards developing domestic supply chains for industries adjacent to the energy transition. The lithium sector specifically has recently seen a similar move in the United States, with the US DoE’s funding of Ioneer’s Rhyolite Ridge project.

This move is part of a recent trend, with industries and nations looking to reduce the risk exposure of their critical material supply chains.  The transition to a more regionalised trade network in Europe and the USA has largely been to reduce dependence on Asian, and more specifically Chinese supply chains. In the coming years, Project Blue expects to see further examples of this.