EMH now on the priority list for a €49M government grant

Our European lithium Investment European Metals Holdings (ASX: EMH) has just been classified as a "Strategic Project" for the Usti Region of the Czech Republic.

The classification is a symbol of recognition for the strategic importance of EMH's project as a potential EU-based lithium supply from the European Commission, and Czech central and regional governments.

The classification also means that EMH's project has priority status for grant funding from the €1.64BN Just Transition Fund (JTF).

Of the total available, EMH will be applying for ~€49M in potential grant funding.

EMH is still to secure the funding at this stage, but if successful, the total amount would be non-dilutive. That means it would reduce the amount of equity EMH needs to raise to finance the construction of its project.

This is the first of what we hope is more newsflow from European grant funding for critical minerals projects like EMH's.

After announcing a new "Critical Raw Minerals Act" for Europe in September, the President of the European Commission, Ursula von der Leyen, commented, "Lithium will soon be MORE important than oil and gas...".

Spooked by the energy crisis caused by a reliance on Russian gas supply, Europe is looking to avoid the same when it comes to critical minerals like lithium.

We think EMH's project, a development ready lithium project inside the European Union with the biggest hard rock resource in Europe, is exactly what the European Commission is looking for.

This is central to our Big Bet for EMH, which is:

"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."

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.