Serbia is poised to strengthen its automotive industry with a significant move towards electric vehicle (EV) production, bolstered by a Memorandum of Understanding between the Serbian government and Mint Holdings Limited, a Chinese company. The agreement outlines plans for Mint to invest 870 million euros over the next decade to establish electric car manufacturing facilities in Indjija, which is expected to create 2,220 jobs.
Mint Holdings Limited is not new to Serbia, already operating production facilities in Loznica and Šabac. Recently, the company received over 23 million euros in subsidies from Serbia to expand its existing operations. Moreover, the International Finance Corporation (IFC) is considering a loan of 598 million euros to support Mint’s capacity expansion efforts in Serbia and Poland, aimed at enhancing battery housing production for electric vehicles.
The expansion plans coincide with ongoing efforts in Serbia’s battery manufacturing sector. InoBat, a Slovakian battery factory, has been in discussions with Serbia to establish a battery gigafactory in Ćuprija. Previously, InoBat signed agreements with the Serbian government to build this facility, which is projected to receive 419 million euros in state incentives. The factory aims not only to produce batteries but also to recycle used ones, aligning with Serbia’s strategy to develop a comprehensive battery supply chain.
The connection between these investments and Serbia’s controversial lithium mining project, notably the Jadar mine, raises significant questions. While Mint and InoBat focus on expanding production capabilities in Serbia, their operations are intricately linked to the availability of lithium for battery manufacturing. InoBat has partnered with Rio Tinto, a global mining giant involved in the lithium sector, to develop a local battery value chain, from mining through to battery recycling.
Economists like Mihailo Gajić emphasize that while these companies are committed to Serbia’s automotive and battery sectors, their investments do not hinge solely on the Jadar project’s success. Instead, they are part of broader strategies to integrate Serbia into Europe’s EV production network, which includes manufacturing components from raw materials to finished electric vehicles.
Serbia’s automotive landscape is evolving rapidly with investments from multiple international players. Companies like Stellantis are already producing electric cars in Kragujevac, while ElevenEs in Subotica plans a significant production increase. The convergence of these efforts indicates Serbia’s potential to establish a robust EV supply chain domestically, connecting mining resources to high-value manufacturing and final product assembly.
As Serbia continues to attract foreign investment in its automotive and battery sectors, the strategic alignment with European and global markets positions the country as a pivotal player in the electric mobility revolution. The integration of mining, battery production, and vehicle manufacturing underscores Serbia’s ambitions to become a hub for sustainable automotive technologies in Europe.
