The definitive feasibility study is complete. It has confirmed that the lithium mining and processing project is feasible. The EIA will be submitted by the end of the year

The definitive feasibility study is a comprehensive document that summarises all aspects of the planned project and determines whether its implementation is technically, economically, environmentally and legally feasible. It is an important document containing thousands of pages of technical text. It covers both the mining and processing parts of the project, as well as the necessary transport of the material. The definitive feasibility study has confirmed that 3.2 million tonnes of ore per year can be mined at Cínovec and will produce approximately 37.5 thousand tonnes of battery-grade lithium carbonate for up to 1.3 million electric vehicles.

The total investment of the lithium park is estimated at more than 42 billion CZK. This would make it the largest investment in the history of the Ústí nad Labem Region and one of the largest in the entire Czech Republic. The cost of the processing plant and associated logistics infrastructure makes up the majority of the project’s total expenses. The processing plant, transshipment point at Dukla and necessary infrastructure should cost approximately CZK 25 billion. The mine itself should cost approximately CZK 5 billion. The remainder is for other necessary infrastructure.

“The completion of the definitive feasibility study is an important milestone for the entire project. It brings us closer to building a major transition project in Ústí nad Labem Region. The mining operation and sophisticated lithium processing plant will directly create approximately 2,000 skilled jobs, with a further 2,000 jobs created downstream. The future workers will be highly paid, which will make a positive contribution to the economy of the entire Ústí Region. In addition, our project may attract other entrepreneurs," said Geomet CEO Martin Pohlodek.

Lithium mining and processing is a strategic project for the Czech Republic and the entire European Union. This year, the European Commission classified it as a strategic project under the Critical Raw Materials Act, which confirms the Czech deposit’s importance in a pan-European context. The European Union has set a target to source at least 10% of its annual consumption of strategic critical raw materials from extraction on its territory by 2030. The Czech lithium project can significantly contribute to this target. Experts expect a significant increase in demand for lithium, especially in connection with batteries for electric vehicles and for the storage of energy from renewable sources. The automotive industry accounts for about 10% of the Czech Republic’s GDP. In the coming years, it will undergo an inevitable transformation from internal combustion engines to electromobility. A Czech source of lithium, which is used in electric car batteries, will help preserve jobs, the automotive tradition, a wide supply chain and follow-up services.

The future mine is to be built in Cínovec and the lithium ore processing plant is to be in Prunéřov, on the site of a former coal-fired power plant. The excavated material will be transported to Prunéřov by train, which will be loaded in the Dukla industrial zone near Újezdeček. It will be transported there from Cínovec by a modern conveyor. The DFS has confirmed that mining will be carried out underground at depth and the mine will be accessed by two decline tunnels leading directly to the deposit from a portal at the Sedmihůrka site. A station will be built underground at the mouth of the tunnels and primary and secondary crushing will take place there. The massif’s long-term stability is ensured by the natural quality of the rock, as well as by the design of the mine workings with pillars and backfilling.

The DFS also confirmed that the processing plant can be moved from the originally considered Dukla industrial zone to the site of the former coal-fired power plant in Prunéřov. The new location was a compromise resulting from negotiations with local authorities and the region. When preparing the definitive feasibility study, the lithium processing technology itself was verified by a set of laboratory and semi-operational tests in several stages with repeatable results. The process consists of two main parts. The first one is the part for ore sorting and treatment. This part is referred to as FECAB. The second part is the LCP chemical plant, where refining takes place to produce the final product of battery-grade lithium carbonate.

The study’s results and the EIA documentation submitted will soon be used by Geomet’s shareholders as a basis for decisions on the implementation and financing of the project’s next stage.

Benefits for Ústí nad Labem Region

The currently largest investment in the Ústí nad Labem Region, amounting to 42 billion CZK, may play a strategic role in the transition of Ústí nad Labem Region from the coal industry to a modern energy centre. The project will create nearly 2,000 jobs directly, with a further 2,000 jobs created in the downstream supply chain. Geomet estimates the average gross wage of a lithium park employee to be over CZK 80,000, which will be roughly double the current average wage in the region. The total income for public budgets is expected to be CZK 3.2 billion per year. An investment of this size may also attract other major investors to the region, which would have a further positive impact on the regional economy.

ČEZ and Geomet are also actively cooperating with universities and research centres in the field of raw material mining and processing, with plans to significantly further deepen this cooperation as the project progresses towards implementation. Jan Evangelista Purkyně University (UJEP) in Ústí nad Labem is an important partner.

Permitting Processes Are Continuing, EIA Documentation to Be Submitted by the End of the Year

The next steps will now be to complete the legislative processes. For example, the project must undergo an EIA, which will set out measures to minimise potential impacts on the surrounding area. The mining and processing of lithium will be carried out with the utmost respect for the environment and the surrounding municipalities. Geomet plans to hand the EIA documentation over by the end of this year. The approval of the update to the Ústí nad Labem Regional Development Principles will be another important development for the project.

The project’s importance is also demonstrated by the public support it has received. An example is the CZK 800 million subsidy from the Fair Transition Fund that Geomet received this April. This November, the Czech government also approved a subsidy of up to 350 million euros (CZK 8.8 billion) from the Strategic Investments for a Climate Neutral Economy programme, which Geomet will be able to draw on between 2029 and 2031.

Main Milestones for the Lithium Mining and Processing Project in Ústí nad Labem Region:

• April 2024: Based on earlier negotiations with representatives of the region and municipalities, Geomet changed the location of the processing plant from the Dukla industrial zone near Újezdeček to Prunéřov, where it will be on the site of a former coal-fired power plant. The processing plant’s location was some municipalities’ main objection to the project.
• March 2025: The project for lithium mining at Cínovec and its processing in Prunéřov, Chomutov District, Ústí nad Labem Region, was classified by the European Commission as a strategic project under the Critical Raw Materials Act (CRMA). The Czech government also designated Cínovec as a deposit of strategic importance in March.
• April 2025: The project received a grant of CZK 800 million from the Fair Transition Fund.
• November 2025: The lithium park project received funding from the Strategic Investments for a Climate Neutral Economy programme. Geomet will use the money to build a lithium processing plant. In total, the government will support the project by giving it around CZK 8.8 billion.
• December 2025: Completion of the definitive feasibility study.