Serbia launches the Lithium-Turbo project
Serbia is rich in Lithium. Germany also aims to benefit from the new raw material agreement with the EU. Economically, we are moving closer. But at what cost?
Serbia is a country between East and West. Germany was the most important import- and export partner in the past year and since 2012, Serbia has been an EU membership candidate. On the other hand, Serbia maintains friendly relations with Russia, and China is an important strategic partner.
When it comes to Lithium, Serbia is now focusing on the European Union. A raw material agreement was recently closed to jointly exploit the Lithium reserves in the Serbian Jadar Valley. For Michael Harms, Managing Director at the Eastern Committee of German Business, this deal is not only economically significant but also geopolitically. "One has thereby crossed out a stronger role for China," Harms said in the ntv podcast "Wirtschaft Welt & Weit."
EU becomes less dependent on China
Through the Lithium deal, Serbia could become the first European country to control the entire value chain - from the mining of the battery-essential light metal to the production of electric vehicles. In addition, the EU reduces its dependence on China - and profits from short transport routes. Economically, the deal seems beneficial for both sides. But what about political implications? Mario Holzner is a Balkan expert and Director of the Vienna Institute for International Economic Studies. In the podcast, he speaks of President Aleksandar Vucic's attempt to extract concessions, "well knowing that Serbia will not join the EU as long as the Kosovo issue is not resolved." Serbia recognizes Kosovo's independence differently than many EU countries.
According to Holzner, there are political interests involved in the Lithium deal. "Considering that Serbia supports the West in arming Ukraine, there are concessions from the Serbian side that naturally involve corresponding political counter-moves," so Holzner. In the case of "Rule of Law in Serbia," both eyes would be closed, just as in the Kosovo issue and the question of how free the elections in the country are. Meanwhile, Serbian environmental activists continue to protest against the Lithium project out of concern for arable land and groundwater.
- With Serbia's focus on electromobility and the EU, the partnership aims to jointly exploit the country's Lithium reserves in the Jadar Valley, potentially making Serbia the first European country to control the entire value chain of battery-essential light metal and electric vehicle production.
- The European Union, facing an opportunity to reduce its dependence on China for battery-essential Lithium, could benefit economically from the agreement, as it would also profit from shorter transport routes for electric vehicles.
- While Serbia maintains friendly relations with China, its strategic partnership with the EU in electromobility could have significant geopolitical implications, as the EU may be able to leverage economic benefits to influence political interests in Serbia, such as the resolution of the Kosovo issue and upholding democratic values.
