The world is gradually transitioning to sustainable energy sources, with lithium at the forefront of this transition. The material is a critical component in the production of batteries for electric vehicles and renewable energy storage systems.
One of the countries with significant lithium reserves is Serbia. The country holds potentially substantial lithium reserves in the global lithium market. In particular, the Jadar Valley region near the town of Loznica contains rich lithium deposits. The recent surge in interest in lithium mining stems from its critical role in the global transition to green energy.
Serbia’s lithium reserves are becoming the focus of both national and international attention. European Commission Vice President Maros Sefcovic and Serbian President Alexandar Vucic signed a strategic partnership agreement at a summit in Belgrade. This summit, attended by German Chancellor Olaf Scholz, was organized to strengthen the supply chains of batteries and electric vehicles. The agreement aims to secure Access to lithium resources, which are critical for Europe’s electric vehicle industry and battery production.
The cooperation between the EU and Serbia is intended to enable both parties to play a more active role in energy transition and technological developments. The agreement is seen as an important step for Serbia to develop its domestic electric vehicle industry and create new economic opportunities. Moreover, this partnership focuses on environmental sustainability and social responsibility, aiming to reduce the environmental impacts of mining activities.
This strategic partnership represents a significant development in regional and global energy policies by contributing to Europe’s energy goals.[i] Serbia’s agreement with the European Union, is viewed as a positive development for the country’s EU membership process. Furthermore, Serbia is poised to become an essential energy hub for the EU. However, as Serbia is seen as an ally of Russia in the Balkans, this lithium agreement places the country ‘’between a rock and a hard place.’’ The agreement with the EU is one of the signs that Serbia wants to strengthen its ties with the Union. While trying to maintain its historical ties with its ally Russia, Serbia aims to balance both sides by making an economically advantageous lithium agreement.
The lithium agreement, which is economically and strategically considerable for Serbia, has sparked protests among the public. The agreement has become the focus of criticism, particularly from enviromentalists and opposition groups. Tens of thousands of people in Belgrade have organized large protests against the renewed lithium mining project. Despite government warnings, these protests have not been postponed. President Aleksandar Vucic claimed in a press conference that he had received information from Russian intelligence services about a potential ‘’coup’’ attempt and ‘’mass unrest’’ instigated’’ by unspecified Western Powers seeking to topple him from power.
Thousands of people gathered in Belgrade, chanting slogans like ‘’No to mining’’ and ‘’Betrayal’’ despite the warnings of the government. The planned mining site in a forested area in the Jadar Valley caused notable unrest in 2022. At that time, large-scale protests were organized across the country and the Project was temporarily halted. Protesters expressed their discontent by blocking Serbia’s major bridges, roads and transportation networks. [ii]
Global efforts to reduce carbon emissions and the increasing demand for electric vehicles are driving the growing need for lithium. Industry reports predict that global lithium demand will triple by 2025. This situation means that Serbia has a strategic advantage in the international market. The country’s rich lithium reserves offer the potential to contribute significantly to the supply chain for battery production, both meeting local energy needs and increasing export opportunities. Additionally, it creates an opportunity to generate remarkable employment within the country. On the other hand, the mining process poses risks to the ecosystem and water resources. Besides, the extraction of lithium may lead to the displacement of people living in the affected region.
With the world’s shift towards green energy, the growing interest in lithium presents a substantial opportunity for Serbia, which possesses crucial, lithium mines. As long as lithium remains vital, Serbia’s strategic importance will continue as well. Nevertheless, the extraction of lithium mines will have irreversible impacts on the ecosystem, water resources, and people. In the near future, Serbia is likely to find itself in a political situation where it is caught between Russia and the EU.
[i] Robert Hodsgon, “AB Sırbistan ile lityum tedariki için iş birliği anlaşması imzaladı”, Euronews, https://tr.euronews.com/business/2024/07/19/ab-sirbistan-ile-lityum-tedariki-icin-is-birligi-anlasmasi-imzaladi, (Date of Access: 16.08.2024).
[ii] “Sırbistan’da lityum madeni projesi nedeniyle on binler sokakta”, Euronews&AP, https://tr.euronews.com/2024/08/11/sirbistanda-lityum-madeni-projesi-nedeniyle-on-binler-sokakta, (Date of Access: 16.08.2024).
