Belgrade, Serbia – The European Union and Serbia have signed a memorandum of understanding (MoU) on critical raw materials, paving the way for the controversial Jadar lithium mine in western Serbia. The agreement, focused on battery supply chains and electric vehicle (EV) production, comes despite widespread protests from local residents and environmental activists.
The MoU was signed by Serbia’s Minister of Mining and Energy and the EU’s Vice-President overseeing the Green Deal in a high-profile ceremony attended by Serbian and German heads of state, reflecting the project’s strategic importance to Europe’s EV ambitions.
“We believe this will bring €6 billion in foreign direct investment — the largest investment in our country’s history,” said Serbian President, pledging personal oversight to protect the environment and local communities in the Jadar Valley.
Strategic importance for the EU
The EU is eager to secure lithium sources to reduce dependence on Chinese imports for EV batteries. German Chancellor, speaking at the Serbian Critical Raw Materials Summit 2024, called the project a “good investment for Serbia”, emphasizing its potential to create jobs across mining, processing, and downstream battery production while supporting carbon-free mobility.
The signing ceremony also included executives from Rio Tinto, Mercedes-Benz, the European Bank for Reconstruction and Development (EBRD), and Germany’s KfW Group, highlighting the international financial backing behind the project.
Legal and regulatory developments
The Serbian government reinstated a spatial plan enabling the project, which had previously been canceled following mass protests. Officials adopted a “conclusion on determining the basis” for the MoU just one day before the signing.
The MoU commits Serbia and the EU to:
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Promote close cooperation between industrial stakeholders
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Develop a pipeline of critical mineral projects
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Facilitate trade and investment linkages across the entire EV battery value chain
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Support economic security for both the EU and Serbia
Controversy and public opposition
The Jadar lithium mine has faced years of opposition, with activists warning of potential water and soil contamination. Many local residents feel pressured by Rio Tinto, citing concerns that financial gains for Serbia may be limited, especially given the company’s global history of controversial mining operations.
Despite previous shelving of the project in 2022 due to public protests, Rio Tinto invested over €1.2 million in land acquisition at the proposed site. The company claims the mine could become one of Europe’s largest lithium producers, placing it among the top ten global lithium suppliers.
Lithium and the European energy transition
Lithium mining is chemical- and resource-intensive, requiring extraction of large quantities of rock to obtain battery-grade material. The EU currently imports nearly all its lithium, but demand is expected to increase 18-fold by 2030 and 60-fold by 2050 due to the shift toward electric vehicles and renewable energy technologies.
With strong backing from the UK, Australia, the US, and the EU, the Jadar project is positioned as a strategic component of Europe’s EV battery supply chain, despite ongoing environmental and social concerns.
