Serbia and EU Sign Agreement on Lithium Mining, Paving the Way for Rio Tinto’s Controversial Jadar Project
Serbian Minister of Mining and Energy, Dubravka Djedovic Handanovic, and European Commission Vice-President, Maros Sefcovic, have signed a critical memorandum of understanding on raw materials, battery supply chains, and electric vehicles in Belgrade. This agreement marks a significant step forward for a major lithium mining project in Serbia, which has been surrounded by controversy and protests for years.
The primary focus of this deal is the planned Rio Tinto lithium mine in Serbia’s Jadar Valley, a project that has faced strong opposition from local communities and environmental activists concerned about its potential impact. The EU aims to reduce its dependence on Chinese lithium imports by sourcing lithium locally for electric vehicle batteries, highlighting the strategic importance of this mine to the European bloc.
The signing ceremony, underscoring the mine’s importance to the EU, was attended by German Chancellor Olaf Scholz and Serbian President Aleksandar Vucic, signaling high-level support for the project. Vucic emphasized the economic benefits of the mine, claiming it could bring €6 billion in foreign direct investment to Serbia.
Jadar Lithium Mine: A Contentious Yet Lucrative Project
At the “Serbian Critical Raw Materials Summit 2024” before the signing, Chancellor Scholz expressed his support for the Jadar lithium mine, calling it a “good project for Serbia.” He highlighted the economic and job creation potential, particularly in mining and related sectors, and its importance for Serbia’s integration into future mobility solutions with low carbon emissions.
Serbian Minister of Economy, Adrijana Mesarovic, also signed a letter of intent with key stakeholders like European Bank for Reconstruction and Development President Odile Renaud-Basso, Rio Tinto CEO Jakob Stausholm, and Mercedes-Benz Group Chairman Ola Kallenius to develop Serbia’s e-mobility value chain.
Overcoming Legal and Environmental Challenges for the Lithium Mine
In recent days, the Serbian government has been clearing obstacles to make the lithium mine project a reality. Just before the agreement was signed, authorities reinstated a spatial plan for lithium extraction that had been revoked in 2022 after massive public protests. The government also adopted a memorandum framework to foster cooperation between Serbian and EU industrial stakeholders, promoting investment along the entire value chain from exploration to production, with a strong focus on electric vehicles.
However, the project has faced backlash from local residents and environmental groups who fear the mine could damage water and land in western Serbia. An investigation by BIRN in February 2023 revealed that Rio Tinto had continued buying land in the proposed mine area, spending over €1.2 million even after the project was officially halted in 2022. Critics argue the financial gains for Serbia are minimal and point out Rio Tinto’s controversial track record worldwide.
Lithium Mining’s Strategic Role in Europe’s Green Transition
The Rio Tinto Jadar lithium mine is projected to be one of Europe’s largest lithium operations, potentially making Rio Tinto one of the top ten lithium producers globally. With the EU importing nearly all of its lithium, the bloc is keen on securing its supply chain of battery minerals and materials to meet the soaring demand for electric vehicle batteries. Lithium demand is expected to increase 18-fold by 2030 and 60-fold by 2050, driven by the global shift toward sustainable energy and electric vehicles.
With strong backing from the UK, Australia, the US, and the EU, the Jadar lithium mine represents a critical piece of Europe’s future in battery production and electric mobility. Despite the environmental and social challenges, Serbia’s government appears committed to moving forward, citing substantial economic benefits and strategic alignment with the EU’s Green Deal objectives.
