The All Ordinaries Index (ASX: XAO) is just about flat today, but that's not stopping this rocketing ASX lithium stock.
The surging company in question is European Metals Holdings Ltd (ASX: EMH).
European Metals shares closed yesterday trading for 23 cents. In late morning trade on Friday, shares are changing hands for 46 cents apiece.
In earlier trade today, shares were trading as high as 55 cents apiece, up a remarkable 139.1%.
At the current price, this ASX lithium stock is up a whopping 100% today and commanding a market cap of $104 million.
It also now sees shares up more than 218% since this time last year.
Here's what's capturing ASX investor interest in the junior ASX mining company today.
ASX lithium stock soars on $645 million grant
The European Metals share price is going through the roof after the company announced that its Geomet joint venture company (49% owned by EMH) has been awarded a grant of up to 360 million euros (AU$645 million).
The grant will help fund the development of the ASX lithium stock's flagship Cinovec Lithium Project, located in the Czech Republic. Management said it will support significant investments in the production and expansion of equipment, key components, and critical raw materials at the project.
The money is being provided via the Strategic Investments for a Climate-Neutral Economy program, which is administered by the Ministry of Industry and Trade of the Czech Republic.
While many Aussies won't be familiar with the project, it's a pretty big deal.
According to the release:
Cinovec hosts a globally significant hard rock lithium deposit with a total Measured Mineral Resource of 53.3Mt at 0.48% Li2O, Indicated Mineral Resource of 360.2Mt at 0.44% Li2O and an Inferred Mineral Resource of 294.7Mt at 0.39% Li2O containing a combined 7.39 million tonnes Lithium Carbonate Equivalent.
In fact, Cinovec counts as the largest hard rock lithium deposit in Europe. As such, Cinovec has been designated a Strategic Project by the European Union under the Critical Raw Materials Act.
The ASX lithium stock noted that the final amount of the grant will be confirmed upon formal award, and it could come in below the maximum amount of 360 million euros.
What did management say?
Commenting on the government grant sending the ASX lithium stock flying today, European Metals executive chairman Keith Coughlan said, "This is a transformational milestone for European Metals and the Cinovec Project."
Coughlan added:
The Czech government's award of a grant of up to 360 million euros represents one of the largest direct project level funding commitments to a critical raw materials project within the European Union.
Following the previously detailed formal recognition of the project, the approval of such a significant financial contribution clearly demonstrates the support for and importance of Cinovec in the future of European electromobility.
