The outlook for coal mining in the Czech Republic is weakening, and coal output will decline gradually over the long term. However, the closure of coal mining as well as coal-fired power generation is not expected anytime in 2023 despite the government’s original plan to end hard coal extraction and coal-fired power generation in the country by 2033. Amid the high energy cost crisis and the heavy usage of power in the industrial sector, the government has allowed for the further extraction and expansion of coal mining in the country.

The prospects for the country’s nascent lithium and manganese sectors continue to improve as the EU pushes to develop a local supply chain for electric vehicle manufacturing. Notably, the Cinovec lithium project in the Czech Republic’s Usti region was alleged to be strategic. The nomination means the project will be given priority for grant funding from the Just Transition Fund of the EU, which supports the European region’s reliance on fossil fuels and high-emission industries in their green transition. European Metal’s Cinovec project is regarded as Europe’s largest hard rock lithium deposit and the world’s fourth-largest non-brine deposit.