Solz: Lithium is the oil of the future

Germany and the EU boast of an agreement with Serbia that allows the disputed mining of a key raw material for electric vehicles

14015 views 56 reactions 43 comment(s)
Šolc, Vučić and Ševčovič yesterday in Belgrade, Photo: Reuters
Šolc, Vučić and Ševčovič yesterday in Belgrade, Photo: Reuters
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

German Chancellor Olaf Scholz praised the preliminary agreement signed yesterday between Serbia and the European Union, which paves the way for the controversial exploitation of lithium, a mega project that could reduce Europe's dependence on China, but which is heavily criticized by environmentalists and opposition groups.

Šolc attended the "Summit on Critical Raw Materials" in Belgrade, where a Memorandum of Understanding and Strategic Partnership on Sustainable Raw Materials, Battery Value Chains and Electric Vehicles was signed.

After the signing ceremony, he said that lithium is as important for mobility in the future as oil has been until now. He said that it is an "important European project" and that it is necessary for Europe to "remain sovereign in a changing world and not depend on others". "I am glad that this decision was made," he said. "I admit, courage was needed for this decision, but it was made at the right moment," Solc pointed out.

Project Jadar
photo: REUTERS

Germany, Europe's biggest carmaker, is looking to secure lithium for its electric vehicle makers, while the EU is struggling to reduce its dependence on imports from China. Lithium is a key substance for making batteries for electric vehicles. China currently dominates the lithium-ion battery supply chain, the Associated Press agency reminds.

Serbia's Constitutional Court earlier this month overturned the government's previous decision to cancel a $2,4 billion mining project launched by the British-Australian mining company Rio Tinto in the Jadra Valley in western Serbia.

The Serbian government's decision to cancel the mining plans came after thousands of protesters in Belgrade and other parts of Serbia blocked major roads and bridges in 2021 to oppose Rio Tinto's plans over potential environmental hazards. The protests have so far represented the biggest challenge to the rule of Serbian President Aleksandar Vučić.

A strong police presence yesterday prevented groups of demonstrators from approaching the government building in the new part of Belgrade, where the signing ceremony was held.

Savo Manojlović, campaign director of the Go-change movement, told Solac yesterday to "leave lithium and democracy to the Serbian people, and take Serbian President Aleksandar Vučić and stabilocracy." Manojlović said at a conference near the Palace of Serbia in New Belgrade that he absolutely does not agree with signing the document. According to him, lithium mining represents a violation of democracy and environmental standards. He also assessed that the institutions are corrupt and that civil disobedience is the answer to that situation.

Own Manojlovic
photo: Beta

Vučić said yesterday that the EU and Germany provide Serbia with the "best guarantees" that the jadarite mineral exploitation project in the vicinity of Loznica will be implemented according to the highest environmental standards. "This day fills me with great hope for our country," said Vučić. "This will be a turning point and a big change, a leap into the future of Serbia," Vučić said.

The memorandum was signed in front of the EU by the vice president of the European Commission, Maroš Ševčovič, who said that he "believes that this is a historic opportunity for Serbia and the EU". "Today's techniques offer multi-layered possibilities of how to mine in an environmentally sustainable way," he told reporters.

Šefčovič added that Serbia's GDP will be increased by 62 billion euros per year. "This project will bring continued success. The agreement will lead to a deeper integration of the economies of Serbia and the EU, and we are already working well within the framework of the four pillars of the Growth Plan for the Western Balkans," he said.

The signing of the memorandum yesterday was also commented on by EU Enlargement Commissioner Oliver Varhelji, who said that it "reaffirms Serbia's European path". Serbia has been a candidate for EU membership for more than a decade, but the accession process has been slowed by Brussels' concerns about the rule of law, corruption and the status of Kosovo. Also, Serbia is one of only two European countries that have not imposed sanctions on Russia for its invasion of Ukraine.

Von Kramon: The EU needs lithium, but not at the price of strengthening Vučić's power

Until recently, a member of the European Parliament and a politician of the German Greens, Viola von Kramon-Taubadel, criticized the EU-Serbia cooperation agreement yesterday and assessed that the citizens of Serbia and the region will not benefit from it, but only the President of Serbia Aleksandar Vučić, the "tycoons" and Rio Tinto.

"That we in the EU need lithium for the transition to e-mobility is indisputable. But I wished for different solutions than this strengthening of Vučić's power. The rule of law and democracy are unknown terms for Vučić. The media is almost entirely under his control," wrote Fon. Kramon on the X network.

She stated that "it is unlikely that the profits from lithium production will end up in the households of people in the region." "Furthermore, the money will end up with friendly tycoons and companies. The EU must closely control the issues of distribution and ecology, and not delegate it to Vučić and Rio Tinto," Von Cramon wrote. She added that a transparent participation process is needed, not a unilateral expropriation process led by Rio Tinto.

Bonus video: