Serbia’s potential lithium mining project, spearheaded by Rio Tinto, faces skepticism regarding its economic viability and environmental impact. Experts caution that there is no guarantee that local battery manufacturers will purchase lithium from Rio Tinto, nor that electric vehicle (EV) manufacturers will buy batteries from these local sources, as pricing and quality are critical factors.
The scientific meeting titled “Project Jadar – What is Known,” held in May 2021, was intended to lay the groundwork for expert analyses and social dialogue. However, since then, no substantial analyses have been conducted, nor have conditions for meaningful dialogue been established. Instead, a contentious atmosphere has developed, with the government, led by the president, staunchly defending the project, while critics raise serious concerns, leading to widespread protests across the country.
Key issues include doubts about the project’s economic justification, potential environmental risks, and a general distrust in the government and Rio Tinto itself. A recent Memorandum of Understanding signed in the presence of Chancellor Scholz, EU representatives, and Serbian officials appears to encourage the president to advance the project aggressively. This aligns with European efforts to reduce dependence on China and continues Germany’s pursuit of lithium resources, while also supporting the president’s approach to governance.
Critics argue that the government is employing increasingly radical measures to quell opposition, including arresting activists as a precursor to more forceful tactics. The president and his administration are engaged in a media campaign to defend the project, targeting dissenting voices and shifting focus from other pressing issues.
Despite the commitment made to the EU, the president has stated that no final decisions will be made until the project is proven environmentally safe, although he has indicated that this determination is a formality. He has suggested the possibility of a referendum, alongside promises of local benefits, such as increased pensions and targeted community support.
Critics of the Jadar project have highlighted the lack of adequate environmental protections and questioned the credibility of Rio Tinto’s past operations, citing examples of environmental degradation in other countries. Concerns about the project’s two main components—the processing plant and the landfill—remain unresolved.
While some argue that Serbia could benefit economically from lithium extraction, experts estimate that the mining operation might generate around €185 million over its lifespan, a figure that does not take into account potential losses in agriculture and tourism, which could be substantial. Additionally, the estimated income represents only a small fraction of the national budget, leading many to question its overall significance to Serbia’s economic growth.
Critically, the project is often justified by its association with the battery and EV supply chain. However, it is noteworthy that several European nations are successfully producing batteries without owning lithium mines. Countries like Hungary are investing in battery production and recycling, despite not having local lithium resources, illustrating that lithium is not the only critical component in battery manufacturing.
Overall, the discourse surrounding the Jadar project reflects broader concerns about environmental sustainability, economic viability, and the need for transparent governance in Serbia’s burgeoning mining sector. Critics argue that the focus should shift from lithium extraction to more sustainable development options that could provide greater long-term benefits to the Serbian economy without compromising the environment.
