German Chancellor Olaf Scholz visited Serbia to engage in discussions regarding a potential agreement with the Balkan country for the excavation of lithium. This mega project aims to decrease Europe's reliance on China for lithium supply, a critical component in the production of batteries for electric vehicles.
Germany, being the largest car manufacturer in Europe, is keen on securing a local source of lithium to support its electric vehicle industry. The European Union is striving to reduce its dependency on lithium imports from China, which currently dominates the lithium-ion battery supply chain.
The spotlight on lithium excavation intensified following a recent decision by Serbia's constitutional court to overturn a ruling that had halted a $2.4 billion mining project initiated by British-Australian mining company Rio Tinto in the Jadar valley of western Serbia. This region is believed to hold the largest lithium deposit in Europe.
Earlier opposition to the mining project stemmed from concerns raised by environmentalists and opposition groups regarding potential environmental hazards. In 2021, thousands of protesters in Belgrade and other parts of Serbia staged demonstrations, blocking major roads and bridges to voice their opposition to Rio Tinto's plans. These protests posed a significant challenge to the rule of Serbian President Aleksandar Vucic.
During the 'critical raw materials summit,' Chancellor Scholz and President Vucic are expected to sign a memorandum of understanding between the EU and Serbia, focusing on a strategic partnership for sustainable raw materials, battery supply chains, and electric vehicles. The agreement will emphasize adherence to high environmental and sustainability standards.
President Vucic has expressed optimism about the potential benefits of lithium mining for Serbia's development. He highlighted the importance of ensuring that the lithium extracted is utilized within the country, potentially through the establishment of car battery factories, rather than exporting raw materials directly to other EU states.
Vucic emphasized the significance of seizing this opportunity for Serbia's advancement, stating, 'This presents big hope for us, Serbia. We are convinced that we will not miss that chance. We are known for missing most chances. This time we must not allow that.'
