Under the watchful eyes of German Chancellor Olaf Scholz and Serbian President Aleksandar Vučić, European Commission Executive Vice President and Commissioner for Energy and the European Green Deal Maroš Šefčovič and Serbian Minister of Mining and Energy Dubravka Đedović Handanović signed a memorandum of understanding on a strategic partnership for sustainable raw materials, battery production chains, and electric vehicles. Serbia is now closer to starting lithium mining in the western part of the country, which is strongly opposed by environmental activists, civil movements, and almost the entire opposition, both left and right.
Signing the Memorandum
German Chancellor Scholz arrived in Serbia on Thursday evening and initially discussed bilateral issues and matters of international and European policy with President Vučić. Following this, Scholz and Šefčovič participated in the “Critical Raw Materials Summit.” Scholz’s visit to Serbia culminated with the aforementioned agreement, which German media have declared important for the German automotive industry. The development of the Jadar deposit in northwest Serbia is expected to significantly boost the European electric vehicle industry. Vučić states that Serbia will produce 58,000 tons of lithium annually, or 17 percent of the EU’s demand. This would suffice for 1.1 million electric cars, according to the Financial Times. Vučić mentioned that Chinese car manufacturers have shown interest in purchasing lithium. “But we told them that we are discussing it with the Europeans. We are loyal to Europe… The EU needs lithium, and we want to strengthen our relations with the EU,” he added.
Importance of the Project
The FT recalls that Serbia halted the lithium mining project two years ago but will now give Rio Tinto the green light for its development after receiving assurances about environmental standards at the mine. Western officials view the revival of the deal with Rio Tinto and the EU’s involvement as a significant signal of Serbia’s geopolitical alignment at a time when the country is being courted by China, Russia, and Gulf states, the FT notes. The newspaper reminds that Serbia has been an EU membership candidate for over a decade, but the accession process has been slowed by Brussels’ concerns over the rule of law, corruption, and the status of Kosovo. Additionally, Serbia is one of the only two European countries that did not impose sanctions on Russia for its invasion of Ukraine, it added. Vučić stated that Serbia aims to develop a full lithium value chain in the country, including battery factories, and that only a portion of the lithium extracted at the Jadar site will be sold abroad as raw material.
Vučić’s Nervousness
While Scholz and Vučić might be pleased with the outcome of the Chancellor’s visit to Belgrade, the Serbian president could not be happy with its start. As reported by “Nova.rs,” during Scholz’s reception, Vučić experienced a minor discomfort, which was further magnified as it was noticed by the media and several opposition politicians. Upon arriving at the airport, after exchanging a few words on the red carpet, Scholz boarded one of the black delegation cars. Vučić remained on the red carpet, seemingly waiting for the Germans to leave the airport. However, Scholz did not move at all. The Vice President of the Party of Freedom and Justice, Marinika Tepić, posted a video on the social network X, showing Vučić waiting for Scholz to leave, while the German’s car did not move. “RTS’s microphone accidentally caught a sour Vučić standing like a doorman next to Scholz’s car for three minutes! And he made no statement. Scholz disembarked, shook hands, and got into the car! He stood there waiting for them to leave, at least to say goodbye, and finally said nervously: ‘If someone would explain to me what he is waiting for now,'” Tepić wrote on X.