The environmental impact of the Jadar lithium mining and processing project appears to be a concern primarily for Serbia and its citizens. For other stakeholders involved, the focus seems to be on their own interests—whether that’s financial gains, access to lithium, or Europe’s strategic efforts to reduce dependence on China.
Economist Jeffrey Sachs argues that the economy often serves as a tool of geopolitics, a perspective that aligns with the diverse interests at play in the Jadar project. The project has seen the alignment of various major players, with economic calculations revealing that the economy is not merely a means to achieve geopolitical goals.
The recent signing of the “Memorandum of Understanding on the Strategic Partnership between Serbia and the European Union in the Field of Sustainable Raw Materials, Battery Value Chains and Electric Vehicles” brings these interests closer to realization. According to journalist Boško Jakšić, Germany’s primary interest is lithium, and the source of the lithium is secondary as long as it’s not from China. Europe, including Germany, is eager to diversify its sources of lithium to reduce its reliance on Chinese supplies.
Currently, German battery manufacturers are heavily dependent on China. Despite sourcing lithium from countries like Brazil, Argentina, or Chile, it is processed in China before being sent back to Germany in a battery-ready form. To address this, German company AMG Lithium plans to build the largest European lithium refinery in Bitterfeld, Germany, which will initially process spodumene concentrate from Brazil and then complete the processing in Germany.
Rio Tinto’s plan to build a lithium processing factory in Serbia alongside the mine aims to produce lithium carbonate directly, potentially eliminating the need to transport lithium across the globe. This development would align with Germany’s interest in securing a reliable and efficient lithium supply chain.
Serbia has indicated that it will prioritize European car manufacturers like Mercedes-Benz, Volkswagen and Stellantis over Chinese firms for lithium purchases. Serbian President Aleksandar Vučić has stated that Serbia is committed to strengthening its relationship with the EU, despite Chinese interest in purchasing Serbian lithium.
However, China remains involved through its significant stake in Rio Tinto, and Chinese battery manufacturers still require lithium. The presence of Chinese investments in Serbia, such as the Minth plant for electric vehicle components and the Inobat battery factory, underscores China’s ongoing role in the lithium market.
The U.S. also plays a strategic role in the Jadar project, supporting it as part of its broader efforts to shift Europe away from Chinese dependencies. The European Commission’s recent tariffs on Chinese electric vehicles reflect this geopolitical shift.
Ultimately, Serbia finds itself at the crossroads of competing interests from global powers and corporations. While the project promises substantial economic benefits, there are concerns about potential political and economic costs associated with aligning too closely with any single global player.
