The EU and Serbia signed a memorandum of understanding on deepening the supply of raw materials, strengthening the lithium battery production chain and promoting the development of the electric vehicle industry at the Key Raw Materials Summit held in Belgrade recently, Xinhua reported. German Chancellor Olaf Scholz and Serbian President Aleksandar Vucic jointly attended the signing ceremony of the Memorandum of Understanding.

 

At a subsequent press conference, Scholz stressed that the Jadar lithium mine project, which has been operated and managed by mining giant Rio Tinto since 2001, will be of inestimable value to Serbia's economic growth and job creation, and will be developed in strict compliance with international environmental standards. He noted that Serbia, as an important partner of Europe, plays a key role in promoting the energy transition in Europe.

 

Rio Tinto's Jadar lithium project, located near Loznica in Serbia, plans to produce about 58,000 tons of lithium carbonate by 2029. The Jadar lithium mine project was suspended by the Serbian government in 2022 due to environmental disputes, but the country's courts have recently restored its mining permit.

 

At the same time, Serbia has also signed a letter of intent with representatives of the European Union to build a value chain for electric vehicles. European Commission Executive Vice President Maros Sefjovic said that Serbia is expected to become a core node in the European strategic value chain, which will greatly contribute to economic prosperity and job growth in the country. In particular, he highlighted the central role of lithium in driving the green transition and predicted a significant increase in investment in lithium resources in Europe.

 

"This is a turning point and a major change for us," Mr Vucic said. "We are taking a huge step into the future." He pointed out that despite the strong interest from Chinese manufacturers, Serbia's lithium resource exports will give priority to meet the needs of European partners.

 

Separately, Vucic said in an interview with the media ahead of the Belgrade summit that the country's relevant companies are in talks with a range of European automakers, including Mercedes, Volkswagen and Strangis. For the Battery Energy Storage System, it is a profitable news with Lifepo4 Battery market.

 

Germany, as the leader of the European car manufacturing industry, is actively seeking stable access to lithium resources for local electric vehicle manufacturers. In recent years, the transformation of the automotive industry to a green and sustainable production model has become increasingly urgent, and the security of lithium supply has become a key issue. Given China's dominant position in the global lithium-ion battery supply chain, the EU is stepping up efforts to reduce its dependence on lithium imports to China in order to ensure a diversified and resilient supply chain.