Lithium

The EU's proactive stance, introduced in the Critical Raw Material Strategy and later Critical Raw Materials Act (CRMA), drives the EU approach to secure the supply of European/domestic critical raw materials for EV battery production. The Cinovec project has a large economic potential as it enhances the ability to secure domestic and regional supply of lithium, which is otherwise very geographically concentrated outside of Europe. Europe relies on a handful of countries, particularly China, for the import of lithium for the production of EV batteries.

The Czech Republic has vast reserves of lithium, a crucial resource for manufacturing batteries for electric vehicles. However, it lags behind in other aspects of the battery supply chain, such as production and recycling. And yet, these key industry sectors could potentially help in saving the local automotive industry. Jonathan Lyons, an analyst at the EUROPEUM Institute, further explored this issue and the potential benefits of lithium for the Czech economy in an article for Hospodářské noviny.