The European Bank for Reconstruction and Development (EBRD) is purchasing a minority equity stake in European Metals Holdings Ltd (EMH), a company listed on ASX and AIM, renowned for its lithium-tin deposit development in the Czech Republic.

EBRD is channeling an investment of €6 million into regular shares as part of a private placement initiative by EMH.

The funding from EBRD will be deployed by EMH to advance its lithium mining project in the Czech Republic. EMH is a 49% stakeholder in the Cinovec deposit, which is the largest hard-rock lithium deposit in Europe, and among the world's most significant untapped tin resources. This investment is geared towards funding the final pre-development tasks and studies, setting the stage for the commencement of full-scale production.

Upon completion, the project is set to yield battery-grade lithium, along with by-products like tin and tungsten. Lithium, a strategic raw material crucial for the manufacture of batteries and energy storage solutions, is much sought after by electric vehicle battery producers. With the global trend leaning towards the widespread use of electric vehicles, the demand for lithium is projected to rise substantially over the next ten years. A robust European production site will decrease the European Union market's dependence on overseas suppliers for this essential raw material, thereby reinforcing Europe's energy security.

The project is committed to maintaining low carbon intensity levels in comparison to other lithium sources. All onsite facilities and operations are obligated to adhere to the EBRD's Performance Requirements as part of the Bank's Environmental and Social Policy.

Following the Czech authorities' appeal for assistance in recovering from the coronavirus pandemic, EBRD resumed its investment activities in the Czech Republic in 2021. Equity transactions and investments favoring the green energy transition are among the key priorities for the Bank's renewed engagement in the country.

Source of this article: www.ebrd.com