Not Gunna Be Enough Lithium, page-1522

All of a sudden we have all this lobbying by the government and CEZ/Geomet. After years of largely being ignored the project sees a campaign that has culminated in a lot of press reports and social media blogs about the need for a vertically integrated lithium industry. Well in my opinion it’s all about the end game for the Czech government and the end game is the all important Czech motor industry.

Why all of a sudden? Well, I am guessing they (CEZ/Government) are close to finalising negotiations with one or two battery factory investors, possible VW or LG or ?? anybody’s guess. But, the building of a megafactory will be most likely be contingent on the mine and processing plant going ahead and guarantee of supply. Therefore lobby the mine/processing plant hard to ensure it gets FID and attract the downstream battery factory investors, and save the auto industry by producing of EV’s in a vertically integrated industry, in time for the ICE phase out. This is a political gift horse for any politician - saving jobs, creating jobs, the green transition, clean energy, keeping manufacturing in the country, etc etc.

Now EMH signing up CEZ was the best thing that happened in my opinion, although it was somewhat forced. For EMH to negotiate with Government, Local Principalities / Mayors, Citizen Groups, Utilities, etc. would have been an impossible task. Now we can sit behind CEZ. I have had a good read through the EBRD web site and for them to take a position in EMH is a big endorsement for the company and project. Their DD on commercial, risk, technical and ESG is thorough, plus, they would have put the ruler over EMH and its board to ensure there are no colloquial ‘skeletons in the closet’.

I see very little risk from hereon as typical environmental issues like water, dust, noise, contamination, etc as have been worked on from the early study days. I also doubt sovereign risk is an issue anymore otherwise EBRD would probably not have invested and it would be known by now if it was a problem.

All my own thoughts here but a string of announcements likely before the end of the year, no matter what.