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Serbia-EU lithium deal ignites social thermal runaway

Published  –  August 16, 2024 11:02 am BST
Staff Writer
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August 16, 2024: Mass protests have been held in Serbia as anger mounts over a deal that would see lithium mined in the country exported to fuel gigafactories in the European Union.

EU leaders signed an agreement with Serbia last month, as reported by Batteries International on July 24, in the bloc’s latest bid to counter its dependence on Asian dominance of the battery cells market — and China in particular.

However, the deal is coming under increasing pressure and an estimated 30,000 Serbians marched through Belgrade amid anger over the plan last weekend, as longstanding controversy over the Jadar lithium project in the country was reignited.

Serbian president Aleksandar Vučić told local media on August 11 he would meet objectors “to talk about their fear”, insisting mining would not go ahead without stringent environmental conditions being in place.

German chancellor Olaf Scholz has acknowledged that the project is not universally popular in Serbia, which is not a member of the EU, telling Vučić at a critical minerals summit on July 19 he understood the decision required courage.

One seasoned EU political observer told Batteries International, on condition of anonymity: “It’s intriguing that Scholz is hardly leading by example when it comes to asking Vučić to be courageous.

“The EU has faced protests on its own territory, such as in Portugal [the Savannah Resources project] and elsewhere, where it has supported lithium mining proposals. But it seems Vučić is being asked to take the political pain for the EU’s gain.”

Last 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.

Caption (pic is for press to use from president’s press service)

President Vučić is pictured attending the launch of new electric vehicle lines at the modernized Stellantis factory in Kragujevac, Serbia, on July 22. Photo: Presidency of Serbia / Dimitrije Goll