Looking for the hottest growth shares to buy? Consider European Metals (LSE:EMH), which sits on one of Europe’s largest mineral deposits. Here’s why, in my view, it’s one of the best beaten-down shares to consider in May.

Lithium rebound

It’s been a tough few years for dedicated lithium miners. A surge in new supply, along with cooling electric vehicle (EV) sales put prices of the white metal under considerable strain. Lithium demand also dropped sharply as automakers ran down their stockpiles.

Over the last five years, European Metals — which owns 49% of the Cinovec lithium project in Czechia — has slumped 78% in value. But it’s bouncing back, and during the past 12 months is up 35%. Has the rebound begun?

I think so, although a sharp economic cooldown could hamper the miner’s lithium price-driven recovery. On the demand front, sales of EVs are rising strongly again following years of underperformance. They’ve gone up another notch following the Iran war too, as drivers worry about petrol prices remaining sky high. Renault UK says” “Interest in electric vehicles has undergone a seismic shift upwards following the spike in oil prices at the end of February“.

It’s not just the EV sector that’s heating up either. Lithium demand for data centres is also rising strongly, as operators build backup power systems for new projects and replace lead-based batteries in existing centres. This should continue as increasing artificial intelligence (AI) usage boosts data centre requirements.

European Metals is a classic high-risk/potentially-high-reward mining story. It doesn’t generate any revenues yet, but it sits on the largest lithium resource in Europe (holding 7m+ tonnes of lithium carbonate equivalent). Not only that, but it’s situated in the carbuilding belt of Western and Central Europe, with a large and mature customer base on its doorstep.

Cinovec’s a key strategic asset for the EU, and been given significant financial support from Czech and EU lawmakers. First production is likely in 2028-2029, pending completion of financing, environmental approvals and permits. While there’s clear risk, I think it’s a potentially explosive growth stock to consider.

A top value share?

There’s another reason why I like European Metals specifically. It’s not just a lithium play, as Cinovec’s also one of the largest tin deposits on the planet.

Even though tin’s a by-product, this provides a useful benefit for the London-listed stock. It provides diversification to help protect earnings if lithium prices take a bump. It’s also possible that tin prices pick up rapid momentum, reflecting the soldering metal’s critical role in hot growth sectors (think electronics, semiconductors and renewable energy projects).

Today, European Metals’ enterprise value is £37m. That’s well below the value of its stake in the Cinovec project — this is £697m ($950m), which suggests its shares are currently underpriced. A large discount is common with junior miners like this. But given Cinovec’s risk/reward profile, I think this particular discount is way too high, making European Metals a top growth share to consider.