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EU and Serbia Forge Lithium Pact
In the presence of Chancellor Olaf Scholz (SPD), the European Union and Serbia have concluded an agreement on the extraction of a lithium deposit worth several billion euros. The signing in Belgrade on Friday was also attended by Serbian President Aleksandar Vucic and EU Commission Vice President Maros Sefcovic. The declaration of intent aims to enable environmentally friendly extraction of the lightweight metal, which is so important for the production of batteries for electric cars, in the Serbian Jadar Valley. There lies one of the largest European reserves of the globally extremely scarce and sought-after raw material.
The raw material agreement is of great significance for both sides. The Serbian government's goal is to build a value chain for electric mobility from raw material extraction to battery production. This means government revenue, investments, and jobs, but also closer ties to the EU for the accession candidate Serbia.
Reduce Dependence on China
Germany and the EU aim to reduce dependence on China with this project. The world's second-largest economy controls a significant portion of the global extraction and processing of lithium. China had also sought to engage in lithium mining in Serbia; in May, President Xi Jinping was in Belgrade. That Europeans have ultimately prevailed is celebrated by the German side as a significant success, which could potentially have a ripple effect on other raw material projects.
However, the project is highly controversial. Environmentalists criticize, among other things, that lithium mining contaminates groundwater with heavy metals, posing a threat to local drinking water supplies. Additionally, there are concerns about the rule of law. The Serbian government only cleared the way for the project a few days ago. It referenced a recent Constitutional Court ruling that reversed a halt to the lithium project from 2022. Critics of the project, however, doubt the independence of the court.
Translated automatically from German.
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