Cinovec has a tradition of mining since the 14th century. For centuries tin, tungsten and silver has been mined there. The extraction of the strategic lithium, which is important for two rapidly growing areas of the industry - electric cars production and energy storage - can therefore revive the drifts in Cinovec. Mining could start in two years. Australian company European Metals bought the explotation rights and wants to spent $393 million to develop the site near Cinovec. The extraction should provide a Czech company Geomet which is part of the holding of European Metals Holdings.
The Ministry of Industry and Trade of the Czech republic is preparing a crucial document that will cover the future mining of lithium in Cinovec. Thanks to this memorandum Australians want to get a guarantee that the Czech republic, which owns all the raw materials under the ground, will not block the mining. At the same time the document should ensure that the lithium will remain to be processed in the Czech Republic. European Metals has already reached an agreement with a potential Czech customer HE3DA, which prepares its own battery production.
Every year the mine should produce over 20,000 tonnes of lithium carbonate. This amount would place the Czech Republic among the top five lithium producers in the world. The global demand for lithium is rising rapidly and the future extraction in the Czech Republic has attracted many international companies.