Europe’s drive to secure domestic supplies of battery materials is creating opportunities for unconventional mining projects, and Euro Manganese’s Chvaletice project in the Czech Republic stands out as one of the most distinctive examples.
Unlike traditional mining developments that extract minerals from newly opened deposits, Chvaletice is based on the reprocessing of historic manganese tailings left behind from previous industrial activity. The project aims to transform legacy waste into high-purity manganese products for the battery industry, combining critical mineral production with a circular-economy approach.
As demand grows for electric vehicle batteries and energy storage systems, high-purity manganese is becoming increasingly important. Chvaletice is positioned as a potential European source of this strategic battery material, but the project’s ultimate success will depend on financing, customer commitments and execution.
A circular-economy approach to battery mineral supply
The Chvaletice project represents a different model for developing critical mineral resources. Instead of conventional open-pit or underground mining, Euro Manganese plans to recover manganese from historical tailings deposits accumulated during past mining activities. By processing existing waste material, the company aims to produce battery-grade manganese products while reducing the need for new mineral extraction.
This approach gives Chvaletice a strong environmental and policy narrative, particularly as governments and manufacturers increasingly focus on responsible sourcing, recycling and lower-impact supply chains. The project is designed to produce high-purity manganese products suitable for use in lithium-ion battery manufacturing, helping address Europe’s dependence on imported battery raw materials.
Updated economics strengthen project outlook
Euro Manganese strengthened the investment case for Chvaletice in May 2026 by announcing a positive Preliminary Economic Assessment (PEA). The study outlined a base-case scenario with a post-tax net present value (NPV) at an 8% discount rate of US$492 million and a post-tax internal rate of return (IRR) of 13.8%.
The company said the project has already achieved several important milestones, including securing most required permits, completing an Environmental and Social Impact Assessment (ESIA), receiving Czech Strategic Deposit status, and being recognized as an EU Strategic Project under the Critical Raw Materials Act. The technical assessment highlights Chvaletice’s potential role in strengthening Europe’s battery supply chain by creating a local source of high-purity manganese products.
Upside scenario highlights potential value
Further details were provided in Euro Manganese’s June technical-report filing, which included updated NI 43-101 and JORC reports supporting the PEA results. The company also presented an upside pricing scenario that increased the project’s estimated value to a post-tax NPV8% of US$798 million and a post-tax IRR of 16.9%.
Euro Manganese emphasized that the economic assessment remains preliminary. The company noted that no mineral reserves have been formally declared and that the project does not yet have fully committed funding for construction and development. This distinction remains important for investors, as positive project economics alone do not guarantee successful mine development.
Permitting progress moves project closer to construction
Regulatory progress has continued throughout 2026 as Euro Manganese advances toward a final development decision.
The company reported several key approvals and milestones, including:
- A construction permit for infrastructure relocation received in May 2026
- A land-planning permit for the processing plant granted in April 2026
- A construction permit for the technological bridge secured in March 2026
- A mining lease determination completed in January 2025
- Environmental and Social Impact Assessment approval received in March 2024
Euro Manganese plans to submit documentation for the Final Mining Operations Permit during the second half of 2026, with the company expecting the final permit decision in 2027. These approvals represent important steps toward converting Chvaletice from an advanced development project into a potential commercial operation.
Strategic importance for Europe’s battery supply chain
The strategic appeal of Chvaletice extends beyond its project economics. High-purity manganese is increasingly viewed as a critical component of the global battery industry as automakers and battery manufacturers diversify supply chains and explore different battery chemistries.
A European source of battery-grade manganese could help reduce dependence on concentrated overseas supply chains while supporting the region’s broader industrial and energy-transition objectives. The project also aligns with wider European and allied-market priorities. Located in the Czech Republic, an EU member state and NATO member, Chvaletice benefits from its proximity to major European manufacturing centers.
Financing remains the decisive challenge
Despite positive economics and regulatory progress, financing remains the key hurdle for Euro Manganese.
The PEA demonstrates potential economic value, but the project still requires additional engineering work, customer agreements, project financing and final investment decisions before construction can begin. The company has acknowledged that it does not currently have committed funding for full project development, making partnerships with strategic investors, battery manufacturers and industrial customers a crucial next step.
From waste material to strategic battery resource
Chvaletice represents a broader trend in the critical minerals industry: finding new ways to secure supply through unconventional resources and circular-economy solutions. The project’s ability to transform historic manganese waste into a modern battery material gives it a unique position within Europe’s raw materials strategy.
Тhe next phase will determine whether the project can move beyond its strong policy appeal and economic potential. Securing offtake agreements, attracting investment and completing financing will be essential to turning Chvaletice into a reliable European supplier of high-purity manganese.
