Serbia is on the verge of granting Rio Tinto approval to develop Europe’s largest lithium mine, a move that could significantly bolster the continent’s electric vehicle (EV) industry, reported the Financial Times today under the title “Serbia Prepares to give Rio Tinto the green light”. President Aleksandar Vučić indicated that renewed assurances from the Anglo-Australian mining giant and support from the EU appear poised to address Serbia’s concerns regarding environmental standards at the Jadar site. Vučić expressed confidence in securing necessary guarantees from EU leaders for related investments in Serbia, including battery production and electric vehicle manufacturing.
An official announcement about the project is expected next month, with business and political leaders anticipated to converge in Belgrade, provided all requirements for “the entire value chain plus perfect environmental protection” are met, Vučić stated.
“If we meet all requirements, the mine could commence operations by 2028,” he added, noting its projected annual lithium production of 58,000 tons, sufficient for about 17% of Europe’s electric vehicle output, approximately 1.1 million cars.
Vučić emphasized the potential transformative impact of the project on Serbia and the broader region, despite the government revoking Rio Tinto’s licenses in January 2022 amidst protests led by environmental groups concerned about mine closure impacts, water pollution, displacement of residents, and disruptions to transportation.
Following the recent municipal elections, where Vučić’s ruling SNS party secured victories in most places, the government now seems poised to proceed with the project. Western officials view Serbia’s planned partnership renewal with Rio Tinto and EU involvement as a significant signal of its geopolitical alignment, especially amidst economic and political courting by China, Russia, and Gulf countries.
While Serbia has been an EU membership candidate for over a decade, progress has been slow, hampered by concerns in Brussels over issues like rule of law and corruption. Belgrade’s strained relations with the EU over Kosovo’s status and its stance on Russia sanctions further complicate its accession process.
Vučić reiterated Serbia’s commitment to EU integration, alleging that some European countries tried to undermine the Jadar agreement.
“They even participated in organizing protests in Serbia… I wondered why they did that? They risk losing everything, and the Chinese could take their place,” Vučić remarked.
Europe currently lacks substantial domestic lithium production, and the Jadar mine could meet 13% of the continent’s lithium demand projected for 2030, according to Fastmarkets.
Martin Baker, senior analyst at Fastmarkets, highlighted Jadar’s high-grade lithium deposits and significant scale compared to other global mines. Siniša Mali, Serbia’s Finance Minister, projected that the project could add between 10 and 12 billion euros annually to the country’s GDP, which was 64 billion euros in 2022.
Mali emphasized that Serbia intends to ban lithium exports and aims to establish a complete value chain domestically.
“Belgrade has always supported the mine, provided it meets stringent environmental standards,” Mali affirmed. He acknowledged that the decision to halt the project earlier was partly political, aimed at avoiding unrest ahead of elections.
Despite potential approval, environmental group Kreni-Promeni’s Savo Manojlovic, who led the late 2021 protests, affirmed opposition to the mine’s reinstatement.
“We will mobilize to defend our environmental standards and constitutional rights,” Manojlovic declared.
Chad Blewitt, Rio Tinto’s general manager for the Jadar project, highlighted the company’s community engagement efforts, including 125 meetings since the project’s suspension. Rio Tinto released a draft environmental assessment underscoring its commitment to transparency and compliance with Serbia and EU’s highest environmental standards.
Rio Tinto welcomed fact-based public discourse on the project’s potential impacts, aiming to develop it safely and sustainably.
