Reviving frozen projects: Serbia-EU cooperation on lithium wing

German Chancellor receives warm welcome in Serbia Olafa Shorza Vice-President of the European Commission Maros SefkovicTo sign a rare raw materials cooperation agreement.

The authorities took the visit so seriously that they painted illuminated German and European flags on the facades of the city’s main high-rise buildings along the Sava River, drawing criticism from the opposition. The main reason for this new round of cooperation is the revival of the frozen lithium mining project along the Jadar River in the northwest of the country. Lithium is scarce and one of the key raw materials for the production of car batteries, which was also the main reason for Scholz’s visit, who had previously been quite reserved about the Serbian authorities. All of this strengthens the position of Serbian President Aleksandar Vucic in Europe, despite occasional criticism of his political approach.

In Belgrade, Shevkovic and the Serbian government signed a memorandum of understanding on a strategic partnership between Serbia and the European Union in the field of sustainable raw materials, batteries and electric vehicle production chains. Automotive companies Marcedes and Stellantis (which has 14 brands), battery manufacturers and financial institutions have signed a letter of intent with Serbia, which is the first step towards an agreement. Scholz said he supports the idea of ​​producing batteries in Serbia, while Vucic said it would bring thousands of jobs and 6 billion euros in revenue per year.

Representatives of Australia’s Rio Tinto, which mines lithium, were also in Belgrade. The project has been in the works for a long time. In 2022, the Serbian government halted the project after protests over environmental issues, and last week the court recognized that the suspension of the project was unconstitutional. Then the wheels quickly started to move, ushering in today’s meeting.