July 16 (Renewables Now) - CEZ Group may become the largest shareholder of European Metals Holdings Ltd, the company awarded the mineral exploration licenses for what is touted as Europe’s largest lithium (Li) deposit.
For now CEZ, one of the big utilities in Central and Eastern Europe, has conditionally agreed to extend a convertible loan of EUR 2 million (USD 2.25m) to European Metals to support the development of the Cinovec Lithium/Tin Project in the Czech Republic, on the border with Germany.
The convertible loan was announced on Tuesday by European Metals, which also said CEZ is conducting due diligence on the company and the Cinovec project. Once that process is concluded, the utility will decide whether to convert the loan into stock and make an additional investment in order to become European Metals' largest shareholder and its co-development partner for Cinovec.
The economic viability of the lithium/tin project has been enhanced by the significant increase in demand for lithium observed globally, and in Europe, European Metals noted. CEZ itself has plans to build energy storage capacity and charging infrastructure for electric vehicles (EV) at home and in other parts of Europe.
“Potentially partnering with CEZ further demonstrates EMH's commitment to develop fully the Cinovec Project in conjunction with Czech industry, for the benefit of the country's involvement in the battery and EV industries,” said Keith Coughlan, European Metals Managing Director.