Germany announced on Wednesday that the European Union and Serbia are poised to finalize an agreement regarding the supply of battery materials. This announcement came a day after Belgrade authorized the resumption of operations at a contentious lithium mining project.
Lithium, a critical metal essential for electric vehicle batteries, plays a pivotal role in Germany’s initiative to transition its flagship automotive sector towards greener production methods.
According to German government spokesperson Steffen Hebestreit, the EU and Serbia will sign a memorandum of understanding on “a strategic partnership on sustainable raw materials, battery supply chains, and electric cars” on Friday. This event will coincide with a “critical raw materials summit” in Serbia, attended by German Chancellor Olaf Scholz, Serbian President Aleksandar Vucic and European Commission Vice-President Maros Sefcovic.
Hebestreit emphasized that the agreement is framed within the context of a “sustainable lithium extraction project” in Serbia, which has been a contentious issue in the Balkan nation in recent years.
On Tuesday, the Belgrade government announced the green light for operations to resume near Loznica, western Serbia, where substantial mineral deposits were discovered in 2004. Rio Tinto intends to mine the area, which it claims contains one of Europe’s largest lithium reserves and has the potential to produce 58,000 tonnes annually, sufficient for 1.1 million electric vehicles.
The project has faced significant opposition, leading to mass protests and a protracted legal battle. However, a recent ruling by Serbia’s constitutional court cleared the path for resuming work.
Critics have raised concerns about the environmental and public health impacts of the mine. Rio Tinto has assured that the project will adhere to rigorous environmental standards, complying with both Serbian and EU regulations.
Hebestreit added that the forthcoming agreement with Serbia will include commitments to uphold high environmental and sustainability standards.
President Vucic has indicated that Serbia could commence lithium mining operations as early as 2028.
