Czech Prime Minister on site at EMH’s lithium project
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Europe’s Critical Raw Materials Act is aiming to have ~40% EU’s lithium processed inside the European Union.
Ultimately the region's target is 80% self-sufficiency in lithium supply by 2025.
Our development-ready lithium Investment, European Metals Holdings (ASX: EMH) holds the largest hard rock lithium resource inside the EU, in the Czech Republic.
EMH’s project is also classified as a "Strategic Project" for the Usti Region of the Czech Republic - recognition of the strategic importance EMH's project holds for the European Commission as well as the Czech central and regional governments.
Such is the strategic importance of the project that today, the Czech Prime Minister Petr Fiala was on a site visit at the project.
Following the site visit the PM crossed the border into Germany and signed a Memorandum of Cooperation (MoC) on the implementation of projects of strategic importance to the region - namely projects in the critical raw materials space.
We think EMH's project could play a role in helping the European Commission secure domestic lithium supply especially considering EMH has:
- The biggest hard rock lithium resource in the European Union (in the Czech Republic).
- A completed Pre Feasibility Study indicating an after-tax project value of up to US$1.9BN.
- A joint venture with Czech government backed utility, CEZ Group.
- A Definitive Feasibility Study due in the coming months based on updated higher lithium prices.
Ultimately EMH’s project location is a key part of the reason we are Invested in EMH and it forms the basis for our Big Bet which is as follows:
"EMH significantly re-rates to $1BN+ market cap on reaching a successful Final Investment Decision for its hard rock lithium project strategically located in the heart of Europe."
NOTE: our "Big Bet" is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved, and it will require a significant amount of luck. There is no guarantee that it will ever come true. Some of these risks we list in our EMH Investment Memo .
See our most recent EMH note in which we touch on the strategic importance of EMH's project here: Lithium in the heart of Europe: Counting down to EMH's feasibility study