EU signs agreement with Serbia on strategic raw materials

The European Union and Serbia have signed an agreement to cooperate on lithium extraction and the production of batteries for electric cars.

On Friday, Serbian President Aleksandar Vucic signed a partnership agreement with the EU to supply strategic raw materials. German Chancellor Olaf Scholz was also present.

Serbia wants to allow carmakers Mercedes-Benz, Volkswagen, and Stellantis to buy lithium from the large lithium mine in the west of the country that mining group Rio Tinto is building there. “Raw materials extracted in Europe should also remain on European soil,” Vucic said.

Protocol agreement

The demarche comes barely a week after a Serbian judge gave the green light to a controversial lithium mining project by mining company Rio Tinto.

The protocol agreement concerns strategic raw materials, such as lithium, and the supply chain for batteries and electric vehicles. Lithium is an indispensable raw material for producing EV batteries. China still dominates that market, but Brussels and Berlin are doing everything possible to reduce dependence.

Jadar region

In 2004, lithium was discovered in the soil in the Jadar region in western Serbia – Jadar refers to the Jadar River that flows nearby. It immediately became clear that it was one of the largest lithium reserves in Europe.

Opponents of the development claimed that the project would seriously damage the area’s environment. Environmentalists feared water, air, and soil pollution.

Months of mass protests against the project led to its halting. In 2022, the then-Prime Minister blocked the mining project under environmental pressure.

Last week, however, the Constitutional Court said the decision was “not in accordance with the Constitution.” That is why the government immediately decided on Tuesday to restart the project. According to Vucic, actual mining could start in 2028.