Green groups in Serbia are planning a mass protest in Belgrade against the opening of Europe’s largest lithium mining operation in the Jadar valley. This project has been a source of unease since Rio Tinto discovered Jadarite twenty years ago. The government withdrew approval for the project in January 2022 due to environmental concerns, but Rio Tinto estimates it could produce 58,000 tonnes of lithium carbonate annually. With the growing popularity of electric vehicles, the demand for lithium is increasing, leading to a rise in market value. Europe is looking to mine lithium closer to home to reduce dependence on external suppliers.
Analysts predict a significant increase in the market value of lithium carbonate, with prices expected to reach $20 per kilo by 2025. Australia is the largest lithium supplier globally, followed by Chile and China. Chinese companies like Tianqi are heavily invested in Australian production and are looking to expand into battery production in Europe. China’s Eve Power and BYD have also announced plans to establish battery and electric car production plants in Hungary and Turkey. The recent EU import tariffs on Chinese electric vehicles indicate a growing incentive for Chinese firms to locate production closer to the European market.
Plans for lithium production within the EU are currently on hold, with Portugal facing public opposition and corruption allegations. Despite being the only significant lithium producer in the EU, Portugal’s plans to ramp up production are stalled. Serbia, on the other hand, has significant lithium reserves estimated at 1.2 million tonnes, making it an attractive location for mining operations. The EU recently signed a memorandum of understanding with Serbia, reaffirming a strategic partnership on sustainable raw materials, battery value chains, and electric vehicles. Germany’s chancellor was also present at the CRM summit in Belgrade, signaling a strong interest in securing a local lithium supply.
The reinstatement of Rio Tinto’s license by the Serbian government has sparked renewed protests against the mining project. The government’s decision to allow the project to proceed despite environmental concerns has led to a backlash from green groups and activists. The EU-Serbia strategic partnership has triggered a fresh round of demonstrations, leading up to a planned mass protest in Belgrade. The protest is expected to draw attention to the environmental impact of the lithium mining operation in the Jadar valley and highlight the growing global demand for lithium in the electric vehicle industry.
In conclusion, the controversy surrounding the lithium mining project in Serbia reflects the broader global trends in the electric vehicle industry and the increasing importance of securing a local supply of critical raw materials. Europe’s push to mine lithium closer to home is driven by concerns over dependence on external suppliers and geopolitical tensions. The protests in Belgrade serve as a reminder of the environmental impacts of large-scale mining operations and the need for sustainable practices in the extraction of raw materials. As the demand for lithium continues to rise, countries and companies are rushing to secure access to this valuable resource, driving competition and investment in the lithium market.
