German Chancellor Olaf Scholz visited Serbia to discuss a potential agreement involving the excavation of lithium, a project that could help lessen Europe’s reliance on China but has faced backlash from environmentalists and opposition groups. Germany, a major car manufacturer in Europe, aims to secure lithium for its electric vehicle industry as the European Union works towards reducing its dependency on Chinese imports, given that lithium is crucial for making electric vehicle batteries. Currently, China dominates the lithium-ion battery supply chain.
The discussion around lithium excavation gained attention after Serbia’s constitutional court recently overturned a decision to halt a $2.4 billion mining project initiated by British-Australian company Rio Tinto in the western Serbian valley of Jadar, a location known for containing one of Europe’s largest lithium deposits. The Serbian government initially canceled the project following protests in 2021 that saw thousands of demonstrators in Belgrade and other parts of Serbia blocking major roads and bridges over concerns about potential environmental risks associated with Rio Tinto’s plans.
During a “critical raw materials summit,” Scholz met with Serbian President Aleksandar Vucic, where officials from both countries are set to sign a memorandum of understanding on a “strategic partnership” focusing on sustainable raw materials, battery supply chains, and electric vehicles. The memorandum will emphasize a commitment to high environmental and sustainability standards, as indicated by German government spokesperson Steffen Hebestreit.
Vucic and other Serbian officials have expressed that the lithium excavation will proceed under the condition that Germany and other EU nations establish car battery factories in Serbia instead of solely exporting raw materials. Vucic highlighted the potential of lithium mining for Serbia’s growth and stated his satisfaction with the discussions, emphasizing the significance of seizing this opportunity.