The European Union and Serbia signed a memorandum of understanding on critical raw materials, linking the agreement to the Jadar lithium mine in western Serbia. The MoU focuses on battery supply chains and electric vehicle (EV) production. Local residents and environmental activists have protested the project.
The signing took place in a high-profile ceremony attended by Serbian and German heads of state. Serbia’s Minister of Mining and Energy and the EU’s Vice-President overseeing the Green Deal signed the document. The event also reflected the project’s stated relevance to Europe’s EV ambitions.
Serbian President said the agreement is expected to bring €6 billion in foreign direct investment, described as the largest investment in Serbia’s history. The President pledged personal oversight to protect the environment and local communities in the Jadar Valley.
Critical raw materials cooperation and EV battery supply chains
The EU aims to secure lithium sources as part of efforts to reduce dependence on Chinese imports for EV batteries. German Chancellor, speaking at the Serbian Critical Raw Materials Summit 2024, described the project as a “good investment for Serbia.” The Chancellor said it could support job creation across mining, processing, and downstream battery production while backing carbon-free mobility.
The ceremony included executives from Rio Tinto and Mercedes-Benz, alongside representatives from the European Bank for Reconstruction and Development (EBRD) and Germany’s KfW Group. Their presence was cited as reflecting international financial backing for the project.
Serbia spatial plan reinstated for Jadar project
Serbian authorities reinstated a spatial plan that enables the Jadar project after it had been canceled following mass protests. Officials adopted a “conclusion on determining the basis” for the MoU one day before the signing ceremony. The reinstatement followed earlier public opposition that had affected the project’s status.
The MoU commits Serbia and the EU to promote close cooperation between industrial stakeholders. It also calls for developing a pipeline of critical mineral projects and facilitating trade and investment linkages across the entire EV battery value chain. The agreement further states support for economic security for both parties.
Opposition, land acquisition, and company claims
The Jadar lithium mine has faced years of opposition from activists who have warned about potential water and soil contamination. Some local residents said they feel pressured by Rio Tinto, while raising concerns that benefits for Serbia may be limited. They pointed to what they described as a global pattern of controversial mining operations by the company.
Although the project was shelved in 2022 following public protests, Rio Tinto invested over €1.2 million in land acquisition at the proposed site. The company said the mine could become one of Europe’s largest lithium producers, placing it among the top ten global lithium suppliers.
Lithium demand growth tied to energy transition
Lithium mining is described as chemical- and resource-intensive, requiring extraction of large quantities of rock to obtain battery-grade material. The EU currently imports nearly all its lithium. Demand is expected to increase 18-fold by 2030 and 60-fold by 2050 due to shifts toward electric vehicles and renewable energy technologies.
The Jadar project is presented as part of Europe’s EV battery supply chain with backing involving the UK, Australia, the US, and the EU. Environmental and social concerns remain part of ongoing public debate around the mine.