A subsidy of up to CZK 8.8 billion for Geomet, part of the ČEZ Group, for the construction of a lithium processing plant in Prunéřov has received approval from the Czech government. The funding will cover investments in technology, infrastructure and job creation. Total costs are expected to exceed CZK 25 billion.

Geomet, majority-owned by Severočeské doly, plans to extract lithium ore from the Cínovec deposit in the Ore Mountains using underground mining. ČEZ has already decided that any lithium extracted would be processed at the Prunéřov site near the power station.

The exact subsidy amount will be set later, and Geomet will be able to draw funding between 2029 and 2031. The Cínovec deposit, the largest in Europe, is considered strategic by the European Commission under the Critical Raw Materials Act.

Several other countries, including Germany, Finland and Portugal, also support lithium projects through grants or loans. Although lithium is seen as a key material for electric vehicles and other technologies, most global processing is still dominated by China.

Earlier this year, the government designated the Cínovec reserves as a strategic deposit to support future extraction and safeguar supply security.

Source: https://www.ceskenoviny.cz/
Author: CzechTrade Sydney