Serbia wants to provide German automotive industry with lithium

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.

Barely a week after a Serbian court decision allowed the resumption of the controversial lithium mining project, Serbian President Aleksandar Vucic told the German business newspaper Handelsblatt that he wants to make agreements with car manufacturers about processing lithium and battery production in their country.

Letters of intent

German Chancellor Olaf Scholz is reportedly traveling to Serbia on Friday to talk to Vucic about critical raw materials for electric cars and the energy transition.

According to Bloomberg news agency, representatives of Mercedes-Benz and Stellantis will also be in Serbia during Scholz’s visit on Friday. Letters of intent for cooperation in lithium processing and batteries may then be signed.

Discovered in 2004, the lithium reserves in the Jadar region in western Serbia are among the largest in Europe. The project’s name, ‘Jadar Mine,’ refers to the nearby Jadar River.

Mass protests

In 2022, the then-Prime Minister blocked the mining project under environmental pressure. Months of mass protests against the project were the basis for halting the project.

Now, work on the Jadar mine can continue again after Rio Tinto promised new guarantees regarding environmental standards. The €2.4 billion project could become Europe’s largest lithium mine, producing 58,000 tons annually. The mine is expected to be operational in 2028.

Strong position in the raw materials market

Environmentalists have regularly protested against the mine, fearing soil, water, and air pollution. However, Rio Tinto has said the mine will create thousands of jobs and give Serbia a strong position in the raw materials market for the energy transition.

Lithium is an essential raw material for the production of electric car batteries. The European automobile industry is investing heavily in the energy transition, as thermal vehicles will be banned from sale in the EU starting in 2035.

The battery market is currently dominated by Chinese producers, on whom Brussels and Berlin want to reduce their dependence.