German Chancellor Olaf Schulz is set to travel to Serbia for talks with his counterpart Alexander Vucic on Friday. The major topic under discussion will be the critical raw materials required for battery supply chains and electric cars. Serbia is estimated to possess up to 10% of the world's lithium reserves, making it a valuable resource for electric vehicle manufacturers. British-Australian mining giant Rio Tinto discovered lithium deposits in Serbia's Jadar Valley in 2004. But, after protests and concerns over the environment and public health, the government halted the mining project in 2022. Last week Serbia's constitutional court overturned that decision. The lithium project in Jadar has the potential to cover 90% of Europe's current lithium needs and could make Rio Tinto a leading lithium producer. The project could bring significant economic gains, contributing to 16% of GDP, or approximately 10 to 12 billion euros annually. Residents of the Jadar Valley and environmentalists express fears about the negative impact of mining and processing lithium fearing potential consequences on the local ecosystem and agriculture.
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