July 24, 2024: The EU has hailed a ‘historic’ pact with Serbia, signed on July 19,  that paves the way for the disputed excavation of lithium, a mega project that could reduce Europe’s dependency on China.

German chancellor, Olaf Scholz attended a “critical raw materials summit” in Belgrade last week, where a memorandum of understanding between the EU and Serbia’s government on a “strategic partnership” on sustainable raw materials, battery supply chains and electric vehicles was signed.

The tentative deal comes two days after Serbia restored mining giant, Rio Tinto’s licence to extract the mineral in the Jadar Valley  in the west of the country.

The partnership has been criticized by environmentalists and opposition groups, but Scholz said it would help to defend Europe’s economic security and that he was keen to ensure his country’s auto industry was at the front of the queue for supplies.

After the signing ceremony he called the project ‘important,’ adding that it was necessary for Europe to remain sovereign in a changing world and not be dependent on others.

“I’m glad the decision was made,” he said. “I admit, this decision required courage, but it was made at the right moment.”

Earlier this month Serbia’s constitutional court scrapped a ban on lithium mining declaring it to be unconstitutional.

The government had previously imposed the suspension in 2022, cancelling a $2.4 billion mining project launched by British-Australian mining company  Rio Tinto in the fertile western Serbian valley of Jadar. This is believed to be the largest lithium discovery in Europe.

Germany, the largest carmaker in Europe, is keen to secure lithium for its EV makers as the EU struggles to reduce dependence on imports from China that dominate the supply chain for lithium-ion batteries.