A recent Summit on Strategic Raw Materials in Belgrade, attended by German Chancellor Olaf Scholz and Serbian President Aleksandar Vučić, saw the signing of several important agreements. President Vučić described the memorandum on critical raw materials signed with the European Union as a “once-in-a-generation opportunity” for the region, emphasizing its potential to shape Serbia’s future.
Vučić highlighted that Serbia has specific conditions related to the rule of law, particularly from Chapters 23-24, and noted that the future of the lithium contract would be commercial. He expressed optimism about the memorandum’s potential to deepen Serbia’s cooperation with the EU.
Mihailo Gajić, president of the economic research organization LIBEK, explained to Euronews Serbia that the memorandum facilitates Serbia’s deeper engagement with the EU on critical raw materials. He noted that the EU aims to reduce reliance on China for materials crucial to decarbonization and the shift to electric and hybrid vehicles. The goal is to source these materials from more geographically and politically stable regions.
Gajić pointed out that Serbia is not alone in signing the memorandum; Norway, Ukraine, and several countries in Africa and Latin America have also participated. He stressed that while the memorandum is politically significant, it is not legally binding. Serbia must now focus on maximizing its benefits from the agreement by integrating domestic producers into the supply chain, which includes not just raw material extraction but also the manufacturing of components like cathodes and batteries.
Gajić highlighted ongoing developments such as the Serbian battery factory Levenes in Subotica, Inobat’s planned investment in Paraćin, and the involvement of Chinese company Mint, all contributing to Serbia’s emerging production chain. He emphasized the importance of connecting these segments to fully leverage the opportunities presented by the memorandum.
Regarding job creation, Gajić projected that integrating the full production chain could potentially create between 10,000 to 15,000 new jobs, though this depends on how effectively the different segments are connected.
On the topic of environmental guarantees, Gajić expressed concerns about the lack of transparent cost-benefit analyses for strategic projects and the need for rigorous environmental impact assessments. He called for official studies to be published and scrutinized to ensure they address potential environmental issues effectively.
Gajić also mentioned the importance of adhering to both domestic and international environmental standards, including the emerging practice of using blockchain technology to trace the origins of raw materials used in batteries. This ensures that the entire production chain aligns with sustainability goals and avoids negative economic and environmental impacts.
