The signing of the memorandum of understanding between Serbia and the EU on critical raw materials marks a significant step forward for the controversial lithium-mining project in Serbia’s Jadar Valley. This agreement, signed by Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic and European Commission vice-president Maros Sefcovic, will allow Rio Tinto’s planned lithium mine to proceed, despite ongoing protests and environmental concerns.
The EU’s interest in the project is driven by its need for lithium, a crucial component for electric vehicle batteries, to reduce dependence on Chinese imports. The high-profile signing, attended by German Chancellor Olaf Scholz and Serbian President Aleksandar Vucic, underscores the project’s importance. Vucic emphasized the project’s potential to bring significant foreign investment to Serbia, amounting to around 6 billion euros.
German Chancellor Scholz supported the project, highlighting its potential for creating new value chains, job opportunities, and connecting Serbia with sustainable mobility. The event also saw the signing of a letter of intent on developing Serbia’s e-mobility value chain by prominent international banking and industrial executives.
Recent legal adjustments by the Serbian government, including reinstating a spatial plan for the project and clearing other legal obstacles, have paved the way for the mine’s development. The memorandum focuses on fostering cooperation between EU and Serbian industries, promoting a pipeline of projects from exploration to the end product, particularly within the EV industrial ecosystem.
Despite the project’s backing by various international stakeholders, including the UK, Australia, the US, and the EU, it remains contentious within Serbia. Environmental activists and local residents fear the mine will harm the region’s water and land. They argue that the financial benefits for Serbia will be minimal and point to Rio Tinto’s controversial history in other parts of the world.
The Serbian government had previously shelved the project in January 2022 following mass protests and public opposition. However, recent developments indicate a renewed commitment to moving forward with the mine, reflecting broader EU ambitions to secure a lithium supply chain as demand for the mineral is projected to surge in the coming decades.
