The chances of Serbian lithium supplies to the EU have increased again: mining company Rio Tinto has regained the license for Europe’s largest lithium mine. This could boost supplies to car companies in Europe for the production of electric cars.
The European industry has been looking for lithium suppliers around the world for years and is in fierce competition with China, which has become the leader in electric cars. Chinese companies have secured lithium mines and further processing in many countries. Chinese President Xi Jinping also stopped in Serbia during his trip to Europe. As battery technology is now classified as a strategically important area by the EU and Germany, European manufacturers and governments are pushing for greater independence from China.
Serbian private broadcaster N1 TV reported that Chancellor Scholz and EU Vice President Maros Sefcovic would travel to Belgrade on July 19 to sign a memorandum of understanding between the EU and Serbia on a strategic partnership in the field of sustainable raw materials, battery production supply chains and electric vehicles.
Criticism from environmental activists
The planned lithium mining has sparked controversy in Serbia as environmentalists accused Rio Tinto of potentially causing massive environmental damage. Rio Tinto had significantly revised its planning in response to the protests. A ruling by a Serbian court a few days ago overturned the Serbian government’s 2022 decision to revoke Rio Tinto’s license due to a lack of environmental protection measures.
The group welcomed the decision, saying the project would be subject to strict environmental requirements, including an “extended phase” of legal, environmental and permitting processes and public consultations before implementation.
Mine could cover 90 percent of current needs
The $2.4 billion Jadar lithium project in western Serbia could meet 90 percent of Europe’s current lithium demand and make the company a leading producer of the raw material. Serbian environmentalists criticized that lithium mining would still cause massive damage and called on Germany to use domestic sources instead.
However, Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic told the Tanjug news agency that the Jadar project represents “the future of Serbia’s economic positioning in Europe”.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
