Belgrade, July 19, 2024 – Serbia and the European Union have signed a memorandum of understanding on critical raw materials, enabling a significant lithium mining project to proceed despite environmental protests.
The memorandum was signed by Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic and European Commission Vice-President Maros Sefcovic in Belgrade. This agreement will facilitate the construction of a major lithium mine in the Jadar Valley, a project planned by multinational corporation Rio Tinto, which has faced opposition from local residents and environmental activists.
The EU is looking to secure lithium sources for electric car batteries to reduce its reliance on Chinese imports. German Chancellor Olaf Scholz, Serbian President Aleksandar Vucic, and European Commission Vice-President Maros Sefcovic attended the high-profile signing ceremony, highlighting the importance of the project to the European bloc.
President Vucic expressed his commitment to environmental protection and the well-being of Jadar Valley residents, emphasizing the economic benefits of the project, which is expected to attract 6 billion euros in foreign direct investments. Chancellor Scholz described the Jadar lithium mine as a promising project for Serbia, citing potential job creation and its role in the future of carbon-free mobility.
The agreement also includes a letter of intent on the development of the e-mobility value chain within Serbia, signed by Serbian Minister of Economy Adrijana Mesarovic and representatives from major international banking and industrial companies, including the European Bank for Reconstruction and Development, KfW Group, Rio Tinto, and Mercedes-Benz.
In preparation for the project, Serbian authorities have been removing legal obstacles. The government reinstated a spatial plan for the lithium project, previously canceled in 2022 following mass protests. The memorandum emphasizes cooperation between EU and Serbian industrial actors, aiming to develop a mutually beneficial pipeline of projects focusing on the electric vehicles industrial ecosystem.
The planned lithium mine has been a contentious issue in Serbia, with concerns about environmental impact and skepticism about financial benefits. Despite the project’s suspension in January 2022 after extensive protests, recent developments indicate a renewed commitment to advancing the mine.
Rio Tinto’s proposed lithium mine in the Jadar Valley is expected to be one of the largest in Europe, positioning the company as a leading global lithium producer. The project has strong support from the UK, Australia, the US, and the EU, with a significant increase in lithium demand anticipated due to the transition to electric vehicles.
