Serbia’s ambitious lithium project has resurfaced as a key initiative that European leaders hope will significantly boost the continent’s green transition. Last week, Belgrade hosted a discreet yet high-profile event—the “Summit on Strategic Raw Materials”—that featured prominent European officials, including German Chancellor Olaf Scholz, European Commission Vice-President Maroš Šefčovič and executives from major European banks and companies.
The memorandum of understanding signed at the summit marks a significant development for both Serbia and Europe. The so-called “lithium deal” involves the extraction of a massive lithium deposit discovered by global mining giant Rio Tinto in Serbia’s Jadar region. This deposit, with an estimated 158 million tonnes of ore containing 1.8% lithium-oxide, could potentially supply enough lithium to support 30% of Europe’s electric vehicle production.
The Serbian government aims to satisfy at least 20% of Europe’s lithium demand. However, previous attempts to develop the project were thwarted by environmental protests, leading to the revocation of mining licenses in early 2022. The new memorandum has revived the project, promising transparency and adherence to high environmental standards.
European leaders and business figures, including Mercedes-Benz’s CEO and top banking officials, attended the summit to underscore the economic and strategic importance of the project. Serbian President Aleksandar Vučić emphasized that the project represents a transformative opportunity for Serbia, potentially bringing €6 billion in investment and aligning the country more closely with EU standards.
The deal is expected to create 2,100 direct jobs and could potentially alleviate Europe’s dependence on distant lithium sources. The EU has pledged to ensure that the project meets rigorous environmental standards, including a comprehensive regulatory framework and advanced sustainability practices.
Despite these assurances, local environmental groups and Serbian citizens remain skeptical. Concerns persist about the environmental impact of lithium mining, with past protests highlighting fears of pollution and ecological damage. The Serbian government has promised to ban lithium exports and encourage local processing to ensure that the benefits of the project remain within the country.
The broader European strategy involves leveraging Serbia’s resources to build a robust value chain for electric vehicle batteries, integrating Serbian lithium into Europe’s green tech sector. This includes investments in local processing facilities and collaboration with major automotive manufacturers like Stellantis, which has recently opened an electric vehicle production line in Kragujevac.
As Serbia embarks on this new phase of the lithium project, both the Serbian government and European partners will need to address environmental concerns and demonstrate that the project’s benefits outweigh its risks. The success of this initiative could set a precedent for future green resource projects in the region and beyond.
