Raw materials EU and Serbia forge lithium pact
For Serbia, it's about billions in revenue, for the EU it's about reducing its dependence on China. However, the extraction of one of Europe's largest lithium deposits also has a downside.
19.07.2024, 12:04
SDA
In the presence of German Chancellor Olaf Scholz (SPD), the European Union and Serbia have concluded an agreement on the extraction of a lithium deposit worth several billion euros. Serbian President Aleksandar Vucic and the Vice President of the EU Commission, Maros Sefcovic, also took part in the signing ceremony in Belgrade on Friday.
The memorandum of understanding is intended to enable environmentally friendly extraction of the light metal, which is so important for the production of batteries for electric cars, in Serbia's Jadar Valley. One of the largest European reserves of this extremely scarce and sought-after raw material in the world lies dormant there.
Both sides have a lot at stake in the raw materials agreement. The Serbian government's aim is to establish a value chain for electromobility, from mining the raw material to battery production. This means state revenue, investments and jobs, but also greater proximity to the EU for Serbia as an accession candidate.
Reducing dependence on China
Germany and the EU want to use the project to reduce their dependence on China. The world's second largest economy controls a large part of the mining and processing of lithium worldwide.
China had also sought to mine lithium in Serbia, and President Xi Jinping visited Belgrade in May. The fact that the Europeans have now prevailed is being celebrated by Germany as a great success, which could perhaps also have a knock-on effect on other raw materials projects.
Controversial project
However, the project is highly controversial. Environmentalists criticize, among other things, that lithium mining contaminates the groundwater with heavy metals and therefore poses a risk to the drinking water supply for local residents. There are also concerns about the rule of law.
The Serbian government cleared the way for the project just a few days ago. It referred to a recent ruling by the Constitutional Court, which reversed a stop to the lithium project in 2022. However, critics of the project question the independence of the court.
