Czech Prime Minister Petr Fiala, during a cabinet visit to the Usti Region, emphasized the government’s commitment to facilitate the launch of lithium mining in Krusne hory. Fiala stressed the importance of cooperation between investors and the regional government in making this project a reality. Lithium, a critical component in the production of car batteries, is considered a strategic raw material vital for the economic revival of the country.

According to Industry and Trade Minister Jozef Sikela, negotiations with three investors to construct a car battery factory in the Czech Republic have reached an advanced stage, underlining the nation’s growing interest in the electric vehicle (EV) industry.

Fiala expressed the government’s intent to have a representative in the working group overseeing lithium mining to ensure the project’s smooth execution. During a meeting with representatives of municipalities affected by the mining in the village of Kostany, it was evident that stakeholders recognized the importance of the project and sought to ensure that it respects the interests of local communities and the region.

Deep lithium mining in the Czech Republic is being planned by Geomet, a company primarily owned by the Severoceske doly mining company, a member of the CEZ group. The deposit near Cinovec in the Teplice region is one of the largest in Europe, with production expected to commence between 2026 and 2028.

Criticism regarding the lack of information about the mining plan from some local mayors has prompted the government to appoint a representative to the working group, ensuring better communication with affected communities.

The extracted lithium is poised to play a significant role in producing batteries for electric cars, aligning with the country’s ambitions in the EV sector. While the potential investors in the car battery factory remain undisclosed, Sikela hinted that one of the projects could be located in the Usti Region.

Beyond lithium mining, the Czech government is engaging in preliminary discussions with investors in areas related to lithium production. These efforts reflect the government’s commitment to not only bolster its position in the EV market but also drive economic growth through strategic resource development.

During the cabinet meeting in Kadan, regional issues took center stage, but discussions about the upcoming 2024 state budget were also on the agenda. Prime Minister Fiala anticipates the cabinet’s approval of the budget on September 27, with an emphasis on maintaining the proposed budget deficit of CZK 252 billion, a reduction of CZK 43 billion compared to the projected deficit for 2023.

The government’s series of regional visits, initiated in March, underscores its commitment to engage with local communities and address their concerns while pursuing economic growth and development initiatives. These efforts are expected to continue with the aim of promoting regional collaboration and fostering economic opportunities.

Article by Prague Forum