Serbian lithium: Hope for Europe, threat to local residents

Thousands of protesters in the streets of Serbia’s capital, Belgrade, oppose planned lithium mining at the Jadar site, one of the world’s largest lithium deposits. The planned project, led by Anglo-Australian mining conglomerate Rio Tinto, is fuelling controversy and environmental concerns amid Europe’s drive for self-sufficiency in critical materials. What do we know about the project so far?

The Jadar deposit is located in western Serbia, approximately 160 kilometres from Belgrade. In 2004, a unique mineral called jadarite, named after the deposit, was discovered there. The US government scientific agency USGS (United States Geological Survey) reported in its 2015 annual report that Serbia had around 118 million tonnes of jadarite, with an average concentration of 1.8% lithium oxide and 13.1% boron oxide. According to the USGS, Serbia has approximately 1.2 million tonnes of lithium, making it a truly significant deposit by global standards. For comparison, exploration estimates put the Czech Republic’s lithium resources at 1.3 million tonnes.

Jadar has been controversial for several years. In 2017, the Serbian government, represented by then Prime Minister Ana Brnabić, signed a memorandum of understanding with Rio Tinto. In 2022, the government, represented by President Aleksandar Vučić, revoked approval of the spatial plan for the mine. The project was revived by a court ruling this year, which restored Rio Tinto’s mining licence, citing the unconstitutionality of the government’s move.

Mining at Jadar has therefore returned to the forefront. This was clearly demonstrated in July, when Serbia and the European Union signed a strategic partnership on sustainable raw materials, battery value chains and electric vehicles. The so-called “critical raw materials summit” was attended by European Commission Vice-President Maroš Šefčovič and German Chancellor Olaf Scholz.

“This decision requires courage, but it was made at the right time,” Scholz told the BBC, adding that the move would ensure Europe remained “sovereign in a changing world” and “would not be dependent on others”. Šefčovič called the summit “a historic day for Serbia and for Europe”.

Two sides of the coin

As is often the case, most issues have two sides, so it is important to consider both “A” and “B”. The fact is that developing the project would indeed make Serbia a significant player in the critical materials sector, placing it alongside Australia, Chile and China.

According to estimates, Jadar could produce 58 thousand tonnes of lithium carbonate each year, equivalent to around 11 thousand tonnes of pure metallic lithium. An analysis by Euronews says that a typical 60kWh electric vehicle battery requires around fifty kilos of salt (Li2CO3, containing just under ten kilograms of pure lithium). That would be enough for more than a million new electric vehicles each year.

It is therefore no surprise that European carmakers such as Mercedes and Stellantis (the result of a merger between France’s Groupe PSA and Italian-American Fiat Chrysler Automobiles) welcome the project. According to the ACEA trade association (European Automobile Manufacturers Association), electric vehicles are accounting for an increasing share of annual car sales: of 10.5 million vehicles, 14.6% were electric.

Lithium’s potential in clean technologies is undoubtedly enormous, as the metal will play a crucial role in the transition to a low-carbon economy. Serbia could become a European hub for green energy, especially if it manages to control the entire value chain, from lithium mining to electric vehicles manufactured in the country, as Vučić and Šefčovič have said.

However, opening the mine could also have irreversible consequences for the environment and for the lives of people directly affected by mining at Jadar. Concerns about the possible contamination of soil and water prompted people to take to the streets of Belgrade on Saturday. Citing Serbia’s interior ministry, the BBC reported that between 24 and 27 thousand people took to the streets.

Biljana Djordjević, co-chair of the Green-Left Front, doubts that the government and citizens can trust each other, as the government claims that mining is also in the interest of its citizens. “We fear that Serbia will be sacrificed to provide lithium for electric vehicles that practically nobody in Serbia can afford,” Djordjević said.

Despite Serbian President Vučić’s statement that he would fight to protect the environment and people’s lives, and ensure that the water and air remain clean, concerns persist. There are also growing doubts about the transparency of the entire process and the mining company itself. It is therefore no surprise that the opposition camp was out in force on Saturday, chanting slogans such as “Rio Tinto, get out of Serbia” and “You will not dig”.

It could take up to two years for Rio Tinto to obtain all the permits needed to begin construction of the mine, Serbian Energy Minister Dubravka Djedović Handanović told Reuters. A lot could change before then.