Serbia opens up for Lithium mining
Serbia Grants License for Europe's Largest Lithium Mine. Lithium is important for Electromobility, Serbia could become a significant producer on the continent. The rising treasure seems to have stirred up interest.
The Serbian government has paved the way for lithium mining in the Jadar Valley. This came after years of protests from environmentalists. With this, the chances for Serbian lithium supplies to the EU have increased. The mining conglomerate Rio Tinto has been given a license again for Europe's largest lithium mine. Belgrade followed this with a recent ruling by the Serbian Constitutional Court.
This could trigger a push for the supply of automakers in Europe for the production of electric cars. Lithium is primarily used for battery production. A Serbian TV station reported that Chancellor Olaf Scholz could travel to Belgrade on Friday. The German government refused to confirm this on request.
European industry has been searching for lithium suppliers worldwide for years and is in fierce competition with China, which leads in the field of electric vehicles. Chinese companies have secured lithium mines and further processing in many countries. China's President Xi Jinping also made a stop in Serbia during his European tour. Since battery technology is now considered a strategically important area by the EU and Germany, European manufacturers and governments are striving for greater independence from China.
Does Scholz announce a strategic partnership with Serbia?
Serbian private broadcaster N1 TV reported that Bundeskanzler Scholz and EU Vice President Maroš Šefčovič would travel to Belgrade on July 19. They are said to sign a declaration of intent there, which would promote a strategic partnership in relation to sustainable raw materials, battery production chains, and electric vehicles.
The planned lithium mining in Serbia has caused controversy, as environmentalists accuse Rio Tinto of potential environmental damage. Rio Tinto revised its plans due to protests. A Serbian court ruling then overturned the Serbian government's decision from 2022 to annul Rio's license due to insufficient environmental protection measures. Rio welcomed the decision and announced that the project would be subject to strict environmental regulations, including an "extensive phase" of legal, environmental, and permitting procedures and public consultations before implementation.
The 2.4 billion dollar Jadar Lithium Project in Western Serbia could cover 90% of the current European lithium demand and make the company a leading lithium producer. Serbian environmentalists criticized that the lithium mining would still cause significant damage and urged Germany to use domestic sources instead. Serbia's Mining and Energy Minister Dubravka Đedović Handanović told the Tanjug news agency that the Jadar Project represented "the future of Serbia's economic positioning in Europe."
Actually, there are Lithium occurrences in Germany as well, but in a smaller scale. The company Zinnwald Lithium GmbH announced last Friday that they plan to increase their production in a mine in Sachsen from 12,000 tons per year to up to 18,000 tons. In February, they announced that the Lithium occurrence at Zinnwald is much larger than initially anticipated. However, mining is not expected to begin before 2028 at the earliest. Exploration of Lithium extraction in the Oberrheingraben area through deep geothermal energy is also being investigated.
- The EU and its automakers could significantly benefit from Serbia's potential increase in lithium supply, given Rio Tinto's license for Europe's largest lithium mine.
- Germany, in particular, is interested in Serbia's lithium reserves, as Chancellor Olaf Scholz might visit Belgrade to discuss potential strategic partnerships relating to sustainable raw materials and electric vehicles.
- The mining of lithium in Serbia has sparked controversy due to environmental concerns, with environmentalists citing potential harm from Rio Tinto's activities and advocating for the use of domestic sources in Germany instead.
- Despite environmental concerns, Serbia's Mining and Energy Minister Dubravka Đedović Handanović emphasized that the Jadar Project represents a significant opportunity for Serbia's economic positioning in Europe.
- While Serbia plans to become a significant lithium producer, Germany too has lithium reserves, with companies like Zinnwald Lithium GmbH planning to expand mining operations in Sachsen.
