Rio Tinto said in its six-month report that output at its Jadar lithium project may need to be “incentivized,” described as a reference to subsidies. The company stated that the project has been self-funded so far, while also indicating it does not rule out seeking government support in the future. The update comes as lithium prices have fallen by 80% from their 2023 peak.
Rio Tinto’s Jadar project director, Čeda Bluit, said the price decline has led to a review of mining costs in Serbia. It is not clear whether the Serbian government would provide direct financing for the mine. Serbia’s support is described as taking the form of infrastructure development linked to a special-purpose Spatial Plan.
Serbia’s mine-linked infrastructure and planned transport upgrades
Rio Tinto said broader infrastructure work is independent of the mine and that the government will not fund infrastructure solely for the company. Serbia’s planned investments near the proposed site include roads and highways, power facilities, and gas networks. The plan includes projects such as the Ruma–Šabac highway and the Šabac–Loznica expressway.
The infrastructure package also covers upgrades to regional railways, with total spending described as reaching into the hundreds of millions of euros. Critics argue that some of these investments may primarily serve the interests of the foreign company. The company’s position is that infrastructure development under the Spatial Plan is not limited to mine-specific funding.
Royalties, revenue estimates, and cost assessments
Experts warned that Serbia would receive low mining royalties from the Jadar project. They said Rio Tinto could earn between €12–16 billion over 30 years of extraction, while Serbia’s gain would be about €400–800 million. Environmental and social costs are estimated at a minimum of €16 billion.
The discussion around economic returns is paired with comparisons to other lithium supply options mentioned in connection with environmental impacts. Alternative sources cited include lithium from water and lithium used in sodium-ion batteries. These alternatives were described as cheaper and more environmentally friendly than rock-derived lithium.