The student protests in Serbia are deeply connected to the ongoing debate over the proposed lithium mine near Loznica, with the lithium deal with the EU acting as a significant barrier to external support for the protests. The issue of the lithium mine has been the focal point of numerous discussions, research, and expert analyses over the past year, with concerns about the economic, environmental and political consequences of the project.
Economist Božo Drašković highlighted that the government’s insistence on the lithium mine could lead to significant social and political crises, emphasizing the need to choose between being a society focused on creativity and freedom or one that serves as a raw material base. The protests that arose from this issue were not spontaneous but built on the momentum of previous anti-lithium protests, the largest movement since 2000.
Rio Tinto, the company behind the project, has been involved in extensive lobbying, including reporting to the EU about Serbia’s EU accession and focusing on regulations related to mineral raw materials and batteries. Despite the government’s suspension of the Jadar project, Rio Tinto continued investing significant funds into the project. Economic pressures have been placed on Serbia, including the potential for international arbitration claims.
The EU has shown interest in the lithium resources in Serbia, with key figures like Vice President Maroš Šefčovič and German Chancellor Olaf Scholz focusing on breaking dependence on China for lithium, while Serbia is criticized for compromising environmental standards. The Serbian government has allowed Rio Tinto to bypass EU regulations by splitting the environmental impact study into separate entities, which obscures the project’s overall effect on the environment.
American businessman Luke Erzeg, who left the lithium business in 2013, explained that the global lithium market has fluctuated, and the demand for lithium is not as constant as once believed. He pointed out that lithium from ore processing is expensive, and alternative sources, like saltwater and spent oil wells, may offer more cost-effective and environmentally friendly solutions. Erzeg suggested that Serbia should explore lithium extraction from water sources in Vojvodina instead of pursuing the environmentally damaging Jadar project.
Ultimately, there are growing concerns that the lithium project is not a necessary or sustainable investment for Serbia, with alternative, cheaper, and more environmentally friendly solutions available.
