European Metals Holdings ups planned lithium production at Cinovec

The AIM-traded firm said the revised plan would boost the output of battery-grade lithium hydroxide monohydrate by 42%, from 29,385 tonnes per annum to 41,658 tonnes per annum, equivalent to 36,670 tonnes of lithium carbonate annually.

It said the increase was supported by a rise in the project's run-of-mine production capacity, now planned at 3.2 million tonnes per annum, up from the previously planned 2.25 million annual tonnes.

The enhanced production plan maintained the same processing plant head grade, life of mine, and recovery rates as earlier projections, ensuring minimal impact on operational efficiency and the environmental footprint.

EMH said the scaling up was enabled by switching to a larger processing site at Prunéřov EPR1, which offered 36 hectares compared to the 24 hectares at the originally-proposed Dukla site.

Economies of scale were expected to deliver significant economic benefits, which would be detailed in the definitive feasibility study, due for completion in mid-2025.

The board said the Cinovec Project remained central to the European Union's strategy to secure critical minerals, including lithium, within its borders.

It said the project - the largest hard rock lithium deposit in the EU - was well-positioned to meet the growing demand for battery materials, and was aligned with EU objectives for low-carbon, sustainable production.

European Metals reaffirmed that the expanded production plan would not affect the definitive feasibility study timeline, with results anticipated in mid-2025.

With repeatable lithium recoveries exceeding 94% in bench-scale testing and a full-scale recovery rate of 91.5%, it added that the project demonstrated strong environmental, social and governance (ESG) credentials alongside its economic potential.

“This work on the production increase was carried out by Bara as part of its mining definitive feasibility study, and is another example of the important work being done to improve the economics of the Cinovec Project during the extended timeframe for the DFS,” said executive chairman Keith Coughlan.

“This significant increase in planned lithium output will lead to additional recognition of how important the Cinovec Project is and the role the project will play in enabling the EU to reach its goals of lithium self-sufficiency by 2030.”

At 1007 GMT, shares in European Metals Holdings were up 1.26% at 7.09p.

Reporting by Josh White for Sharecast.com.