In July 2024, the European Union and Serbia signed a strategic raw materials partnership focused on cooperation in lithium extraction, battery production, and clean technologies. For the EU, the partnership supports diversification of critical raw material supply chains under the Critical Raw Materials Act (CRMA) and aims to reduce dependence on China. For Serbia, it offers investment and geopolitical visibility—but also fuels domestic controversy.
The partnership’s centrepiece is the Jadar lithium mining project, developed by Rio Tinto, which could supply up to 15% of Europe’s lithium demand by 2030. Supported by Germany and the EU, the project is seen as vital for Europe’s green transition. However, it faces massive opposition in Serbia over environmental, legal, and transparency concerns.
Rising domestic resistance
Protests against the Jadar project began in 2020 and have since evolved into a broader movement against government corruption and authoritarianism. Although Serbia’s government suspended the project in 2022, it was revived in 2024 following a Constitutional Court ruling that deemed the suspension unconstitutional. The decision reignited nationwide protests, with reports of police repression, arrests, and intimidation of activists.
Opponents accuse President Aleksandar Vučić’s government of prioritising foreign investors over citizens and ignoring environmental risks. Civil society groups warn that the project could contaminate water resources in western Serbia and devastate agricultural land.
Governance and environmental concerns
Serbia’s weak rule of law and history of lax environmental oversight amplify fears of mismanagement. Previous mining operations, such as those by Zijin Copper, have repeatedly violated pollution limits without significant penalties. Critics warn that “project splitting”—assessing only parts of the project’s environmental impact—could allow Rio Tinto to bypass full scrutiny.
The EU insists the partnership includes high ESG standards, but Serbia’s incomplete alignment with EU environmental law and the suppression of independent monitoring undermine that goal. Amnesty International has reported spyware surveillance and harassment of journalists and environmental activists.
Economic stakes and questionable benefits
The Jadar Project is Serbia’s largest foreign investment, worth around €3 billion, and promises 1,300 permanent jobs. Yet independent economists argue the economic benefits are overstated, with limited local value creation and uncertain infrastructure costs. President Vučić insists that over 87% of lithium will be processed domestically, linking the project to broader efforts to attract battery and electric vehicle manufacturers such as InoBat, Mercedes, and Stellantis.
EU’s dilemma and strategic response
The EU faces a difficult balance between securing critical raw materials and upholding its values-based approach to partnerships. While the bloc supports the project as part of its Green Agenda, continued repression in Serbia and weak environmental governance threaten the EU’s credibility.
Analysts urge the EU to use its accession leverage—including rule of law and sustainability conditions in funding programmes—to demand higher transparency and accountability. The EU could also commission an independent cost–benefit and environmental assessment, published in Serbian, and involve international experts in oversight.
Conclusion
The Jadar lithium project is both a test case for Serbia’s governance and a litmus test for the EU’s ability to enforce democratic and environmental standards in its neighbourhood. If Serbia fails to meet these standards, the EU should be ready to pause or withdraw support, despite potential economic setbacks.
Ultimately, the outcome will determine whether the EU can pursue its strategic resource goals without compromising its core democratic and environmental principles.
