Rio Tinto is currently reassessing the costs of its lithium mining project in Serbia, which the European Commission has designated as one of 13 strategic projects involving critical raw materials outside the European Union, said Chad Blewitt, director of the “Jadar” project.
“The last time we reviewed the budget, it exceeded 2.55 billion euros. We are now updating the capital cost. Since the project holds strategic status with the EU, we must comply with the Union’s environmental and human rights standards, which will be reflected in the final cost,” Blewitt told Reuters.
He did not provide a revised estimate or timeline for the project’s start, originally expected to begin production in 2027, explaining that Rio Tinto has yet to receive a mining permit.
“Once we obtain the license, we can update project plans and costs. I don’t want to give a final date at this point,” Blewitt added, noting that the Jadar project places Serbia “at the forefront of the green and digital revolution.”
If realized, the project could supply 90 percent of Europe’s current lithium demand. However, protesters in Serbia have threatened to block roads and railways if the project proceeds, according to Reuters.
The project has been controversial, especially due to environmental concerns, and was the focus of mass protests in 2022. These protests led the government to cancel all Rio Tinto exploration licenses, a decision later overturned by Serbia’s Constitutional Court last year.
Rio Tinto is one of the few major mining companies heavily investing in lithium projects, a key component in batteries for electric vehicles.
With the lithium market currently stagnant, as supply exceeds demand for electric vehicle batteries, it may take years to determine if Rio Tinto’s investments will be profitable. Nonetheless, lithium demand forecasts for the coming decade are more optimistic, Reuters noted.
