Rio Tinto has placed its Jadar lithium project in “care and maintenance,” keeping the underground deposit in western Serbia’s Mačva region on hold. The project was positioned as a potential supply source for Europe’s battery manufacturing and electric vehicle industries. It has also drawn sustained environmental, social, and political opposition.
Planned output from the Mačva lithium deposit
Jadar was designed to become one of Europe’s largest domestic lithium sources. The deposit contains an estimated 136 million tonnes of high-grade lithium ore, with projected annual output of 58,000 tonnes of lithium carbonate. At full scale, the mine was described as able to supply 90% of Europe’s current lithium demand and about 10% of global requirements.
The project’s underground approach was presented as reducing surface disruption compared with conventional open-pit lithium mining. It was also expected to lower Europe’s reliance on Chinese refineries and South American brine operations. Jadar’s multi-commodity profile included boric acid and sodium sulfate alongside lithium.
Investment, market conditions, and project economics
Rio Tinto committed up to $2.95 billion to develop Jadar, described as one of the company’s largest single-asset investments. The plan aimed to establish what was described as Europe’s first large-scale domestic source of battery-grade lithium. The project was linked to European electric vehicle and renewable energy ambitions.
Rio Tinto cited a sharp deterioration in market conditions, with global lithium prices falling by approximately 85%. The company said the inclusion of boric acid and sodium sulfate was intended to provide revenue diversification amid volatility. The decision to pause development followed permitting delays and other internal priorities.
Jadarite geology and processing requirements
Jadar is described as the only known major deposit of jadarite, a rare lithium sodium borosilicate mineral. Samples of the mineral are preserved in London’s Natural History Museum. The deposit is characterized by high concentrations of lithium and boron.
The resource was also described as having multi-decade potential, with underground mining presented as limiting environmental surface impact. Extracting lithium from jadarite requires specialized technology, which Rio Tinto said increases technical complexity and capital expenditure compared with conventional spodumene or brine processing.
Local environmental concerns raised by opponents
Opposition to Jadar has included concerns about groundwater impacts based on earlier test drilling. The drilling was said to have produced localized leaks with elevated boron levels. Environmental groups and local communities have also raised concerns about effects on agriculture.
The project has been linked to 533 hectares of farmland and forest affected, with implications for crop yields. Subsidence risks were also cited, with underground mining and water extraction described as potentially destabilizing up to 850 hectares. These concerns have been raised for communities totaling 20,000 residents across 22 villages.
Permitting history and regulatory uncertainty
Jadar’s development has faced regulatory hurdles including licence revocations following widespread protests. Governments later signaled renewed support for the project, describing it as strategically important for European raw materials. Despite that shift, approvals, public consultations, and environmental assessments were described as lengthy and unpredictable.
The company said it placed the project into “care and maintenance” citing delays in permitting, corporate restructuring priorities, weak lithium market prices, and uncertainty about long-term demand. Rio Tinto retained mining rights under this arrangement. The company indicated development could restart if market conditions or regulatory circumstances improve.
Implications for European battery supply planning
The pause on Jadar affects plans for Europe’s electric vehicle and energy storage industries by maintaining reliance on external sources. Those include Chinese lithium refineries and South American brine operations mentioned in connection with Europe’s supply chain. The suspension was also associated with increased exposure to geopolitical tensions and trade disruptions.
The situation was presented alongside the need for EU policies supporting domestic critical mineral production. The source material also noted expectations that long-term lithium demand will rise with increasing EV adoption and grid-scale energy storage. It further stated that delays in bringing new mines online—particularly domestic European sources—could contribute to supply shortages.