On July 11, the Serbian Constitutional Court overturned the government’s cancellation of the “Jadar” project’s spatial plan, rekindling public debate about the potential benefits and risks of lithium mining. This decision has also brought attention to Europe’s lithium reserves, as the continent seeks to reduce its dependence on Chinese imports.
Currently, Australia leads global lithium production with 52% of the world’s supply, followed by Chile at 25% and China at nearly 13%. The remaining production is spread across various South and North American countries. In Europe, Portugal is the only country actively producing lithium in significant amounts. However, research from the U.S. Geological Institute reveals substantial lithium deposits across Europe.
Germany holds the largest reserves in Europe, totaling nearly three million tons, with the Czech Republic in second place at 1.3 million tons. Serbia ranks third with over one million tons of reserves. Spain and Portugal follow with 300,000 and 270,000 tons, respectively, while Austria and Finland each have 50,000 tons.
Projected mining timelines
The expected timeline for lithium mining varies by country:
- Finland’s Keliber aims to start mining next year.
- Austria’s European Lithium also plans to begin production next year, pending government approval.
- Spain has similar ambitions for the coming year.
- In Portugal, mining is projected to commence in 2026 at the Kovaš do Barroso site.
- France, with significant new deposits, anticipates production by 2028.
- The German-Czech border is expected to see mining activity from 2028, with feasibility studies ongoing.
Despite these developments, Serbia’s lithium mining plans remain on hold. The “Jadar” project, previously suspended by Prime Minister Ana Brnabić in 2020, was revived in July after the Constitutional Court’s ruling. The Serbian government has since adopted new regulations to support the project, with Rio Tinto backing the renewed effort.
The European Union supports Serbia’s move, highlighting adherence to high environmental standards. However, public protests have emerged, echoing past opposition. Serbian authorities have stated that mining will not begin for at least two more years and will proceed only after expert evaluations.
Economic vs. environmental concerns
Aleksandar Milošević from “New Economy” argues for a reasoned debate on the “Jadar” project, emphasizing the need to balance economic benefits with ecological impacts. He notes that while lithium is not extensively mined in Europe, Serbia’s planned output could significantly boost the economy. The mine could produce 58,000 tons of lithium annually, enough for over a million electric vehicles.
Milošević suggests that Serbia’s investment in a battery factory, with a budget of 419 million euros, could exceed the potential mining rent, which is estimated at 30 million euros annually based on current lithium prices. He also mentions the potential for job creation and the opening of additional factories.
German Chancellor Olaf Scholz and Mercedes-Benz’s director have visited Serbia, emphasizing the need for environmental standards but not providing specific guarantees about factory openings. This has fueled debate between opponents who fear agricultural damage and proponents, including Rio Tinto, who argue for the project’s minimal surface impact.
Milošević calls for a balanced discussion, stressing that extreme forecasts on both sides—catastrophic or overly optimistic—are unlikely to be accurate. He advocates for a thorough examination of the project’s arguments to address concerns and potential benefits.
