At least one e-car battery plant should be built in CR-Havlicek

Prague, July 27 (CTK) - The state wants at least one project of an electric car battery plant, the so-called gigafactory, to be carried out in Czechia, Industry and Transport Minister Karel Havlicek said at a press conference today.

Volkswagen, a German carmaker whose part is Czech company Skoda Auto, and South Korea's LG have shown interest in this project, Havlicek said.

Havlicek and CEO of energy group CEZ Daniel Benes today signed a memorandum on support for the project.

The memorandum was approved by the cabinet on Monday. The minimum cost in the first phase is projected at Kc52bn. At least 2,300 new jobs are to be created, said the document.

The brown coal-fired power plant Prunerov 1, owned by CEZ and shut down last year, is one of the potential sites for building the factory, Havlicek said.

Prunerov is a favourite, Benes said.

The gigafactory plan is linked with the intention to mine lithium in Czechia, said Benes.

CEZ will make a decision on a lithium processing plant next year and the plant's production might begin in 2025. Under an optimistic scenario, an e-car battery plant might be built in Czechia in 2026-2028, Benes said. State support for the gigafactory plan has not been determined. It will consist of direct support and tax relief.

Direct support would be in units of percent and indirect support would be in the form tax relief, Benes said. The state would also have to invest in infrastructure. Nothing has been agreed upon, and decisions that will be made in this regard will need to be approved by the European Commission, he added.

A major portion of the costs should be covered by investors, according to him.

CEZ's share is unclear at the moment as it may be both a developer and a firm that will provide land, supply energy and related services and lithium. There should also be a technology partner and possibly a partner from the automotive segment, Benes said.

"These two to three partners would jointly finance part of the investment," he said. Skoda Auto might be one of the partners, he added.

Last April, CEZ became a majority shareholder of Geomet via Severoceske doly mining company. Geomet holds mining rights for a Cinovec project in Krusne Hory (Ore Mountains). CEZ holds 51 percent of Geomet, 49 percent is in the hands of Australia's European Metals Holdings (EMH).

Czechia is estimated to have about 3 percent of the world's lithium sources, most being at Cinovec, northern Bohemia, which is the largest lithium deposit in Europe.

CEZ and the government want to jointly work on the development of the entire chain that would involve the mining of raw materials, battery processing, their secondary use and battery recycling. A considerable part of the process might take place in Czechia, the parties said in the memorandum.

Tens of battery factories are to be built in Europe because of a shift towards electric mobility, Havlicek said today.

"It can't be ruled out that two similar projects might be carried out in Czechia in the future," he added.

vr/er