Rio Tinto is reassessing the costs of its lithium mining project in Serbia, according to Chad Blewitt, director of the Jadar project. The European Commission has designated the project as one of 13 strategic initiatives involving critical raw materials located outside the European Union. Blewitt said the company is updating its capital cost while accounting for applicable requirements.
Blewitt told Reuters that the last budget review put the project’s costs above 2.55 billion euros. He said Rio Tinto is now updating capital costs and that, because the project has strategic status with the EU, it must comply with Union environmental and human rights standards. He did not specify how those standards would change the cost estimate.
No revised figure or start date was provided for the project. Production was originally expected to begin in 2027, but Blewitt said Rio Tinto has not yet received a mining permit. He said a new timeline and updated plans can be prepared after a license is obtained.
Status of permits and next steps for project planning
Blewitt said that once Rio Tinto receives the license, it can update project plans and costs. He declined to provide a final date at this stage. The company’s ability to move forward is therefore linked to the permitting process for the mining authorization.
The Jadar project has been described by Blewitt as positioning Serbia in relation to the green and digital transition. The statement was made alongside his comments on cost updates and compliance requirements tied to EU strategic status. Reuters reported that protesters have threatened to disrupt transport routes if the project proceeds.
EU strategic designation and public opposition in Serbia
The European Commission’s designation places Jadar among 13 strategic projects involving critical raw materials outside the EU, as stated by Blewitt. Reuters reported that protesters in Serbia have threatened to block roads and railways if development continues. The project has also faced environmental controversy since earlier stages.
Mass protests in 2022 targeted the Jadar initiative due to environmental concerns. Following those protests, Serbia cancelled all Rio Tinto exploration licenses, a decision later overturned by Serbia’s Constitutional Court last year. The dispute over licenses has remained central to how far the project can progress.
Lithium market conditions and potential supply role
If realized, Jadar could supply 90 percent of Europe’s current lithium demand, according to Reuters reporting cited in Blewitt’s remarks. Rio Tinto is among a limited number of major mining firms making heavy investments in lithium projects linked to batteries for electric vehicles. Market timing remains uncertain given current demand-supply dynamics.
Reuters reported that the lithium market is stagnant because supply exceeds demand for electric vehicle batteries. Under those conditions, it may take years to determine whether Rio Tinto’s investments will be profitable. At the same time, lithium demand forecasts for the coming decade are described as more optimistic by Reuters.