“We welcome the European Commission's decision, which confirms that the lithium project at Cínovec is of great importance to the Czech Republic and the European Union as a whole. Lithium is a strategic raw material that the Czech Republic needs to meet its ambitious goals for raw material and energy security, the development of the automotive industry and the ongoing transition of coal regions into modern energy centres. The project for production of Czech lithium is one of the most important transition projects in the Ústí nad Labem Region. We expect that it will bring approximately 1,800 jobs, which will be available, among others, to employees of the coal-fired power plants and mines that will be closing," said Pavel Cyrani, Deputy Chairman of the ČEZ Board of Directors.

The lithium mining and processing project at Cínovec is now becoming not only a Czech, but also a European priority. The next steps will be aimed at completing the legislative processes, then the start of the actual lithium mining and processing. For example, the project must undergo an EIA, which will set out measures to minimise possible impacts on the surrounding area. The lithium mining and processing will be carried out with maximum respect for the environment and the surrounding municipalities. Geomet and ČEZ representatives regularly meet with the mayors of municipalities in the surrounding area and the Ústí nad Labem Region to discuss possible solutions.

Europe passed the Critical Raw Materials Act (CRMA) to strengthen security of critical raw material supplies, reduce dependence on imports from third countries and support innovation in the sustainable sourcing of mineral resources. Lithium is a key raw material for the transition to a modern low-carbon economy, and sufficient quantities in Europe are necessary for the development of the automotive industry and the modernisation of the power sector. Under the Critical Raw Materials Act, the European Union established a list of 34 critical raw materials, 17 of which are designated as strategic. They include lithium, cobalt, nickel, aluminium and synthetic graphite.

The CRMA’s aim is to achieve the following targets by 2030:

• 10% of annual consumption of raw materials should be mined in the EU;
• 40% of annual consumption should be processed in the EU;
• 25% of annual consumption should come from recycling in the EU;
• dependence on one third country should not exceed 65% of annual consumption of each strategic raw material.

The lithium production and processing project in the Czech Republic is being planned by Geomet, a majority in which is owned by the ČEZ Group. The final decision on its implementation is expected this year. The definitive feasibility study is currently being updated, which is due to a change to the processing plant’s location. The future plant’s relocation resulted from negotiations between Geomet and local authorities, as the original location was the municipalities’ main objection to the project. In the originally considered location in the Dukla industrial zone near the municipality of Újezdeček, only a railway station will be built, from where the ore will travel by rail to Prunéřov.