The European Commission has officially designated Rio Tinto’s controversial Jadar lithium-boron mining project in western Serbia as a strategic investment under the Critical Raw Materials Act, placing it among 13 non-EU projects prioritized for the bloc’s energy transition. The move, announced in early June, comes despite years of mass protests, legal challenges, and vocal opposition from Serbian residents, environmental groups, and some European lawmakers, who warn the project threatens water resources, agricultural land, and local communities.
EU Pushes Ahead with Jadar Project Amid Local Outcry
The Jadar project, led by Rio Tinto’s Serbian subsidiary Rio Sava Exploration, is located near Loznica and targets one of the largest known lithium deposits in Europe. With an estimated resource of 136 million tonnes of jadarite, the mine could supply up to 10% of EU lithium demand and play a pivotal role in meeting the EU’s ambitions for battery manufacturing and electric vehicle production. The European Commission’s decision follows a July 2024 memorandum of understanding signed with Serbia, formalizing cooperation on raw materials and value chains for electric vehicles.
Despite the economic rationale, the project has ignited fierce resistance in Serbia. Over 30,000 people protested in Belgrade last August, with demonstrations spreading to dozens of towns and cities. Activists and local residents argue that the mine would irreversibly damage fertile farmland, pollute water supplies, and displace thousands. Environmental studies have flagged risks of groundwater contamination from boron and arsenic, as well as the use of concentrated sulfuric acid in lithium extraction, raising fears of toxic runoff into the Jadar and Drina rivers.
The Serbian government, led by President Aleksandar Vučić, had previously suspended the project in 2022 after mass protests but has since revived key spatial plans and legal frameworks to enable its progression. The European Commission, for its part, insists that all strategic projects must meet “high environmental and social conditions,” but activists remain deeply skeptical, citing Rio Tinto’s global record of environmental violations and the lack of binding EU oversight on projects outside its borders.
Geopolitical Stakes and Accusations of Double Standards
The EU’s backing of the Jadar mine is motivated by the urgent need to reduce dependence on Chinese lithium and secure critical raw materials for its green transition. German Chancellor Olaf Scholz and European Commission Vice President Maroš Šefčovič have both publicly championed the project, framing it as essential for Europe’s sovereignty in battery supply chains.
However, critics in Serbia and across Europe accuse the EU of hypocrisy and neocolonial attitudes. German MPs from the Left Party and Serbian civil society organizations have condemned the project, arguing that the bloc is willing to overlook environmental and democratic standards abroad that it would not tolerate at home. Statements from German officials have further fueled controversy, with some admitting that no lithium mining would be permitted in Germany until environmental safeguards improve, while supporting extraction in Serbia.
Local campaigners, including the “Ne damo Jadar” (We Won’t Give Up Jadar) initiative and “Pravo na vodu” (Right to Water), have vowed to continue resisting the mine, warning that Serbia is being treated as a “potential colony” and that the project prioritizes European industrial interests over the health and rights of local communities. Scientific institutions, such as the University of Belgrade’s Faculty of Biology, have publicly called for the abandonment of the project, citing the risk of irreversible biodiversity loss.
Lithium Market Overview
Lithium is a critical raw material for batteries used in electric vehicles, energy storage, and consumer electronics. Global demand is forecast to triple by 2030 as the energy transition accelerates. Europe currently relies on imports for nearly all of its lithium supply, with China providing 97% of the EU’s lithium imports and dominating both extraction and refining. The EU’s Critical Raw Materials Act aims to secure at least 10% of its lithium demand from domestic or allied sources by 2030, making projects like Jadar strategically vital. However, the environmental and social costs of new mining projects are under increasing scrutiny from investors, automakers, and civil society.
Company Background and Market Context
Rio Tinto, headquartered in London and Melbourne, is one of the world’s largest mining companies, with a long and controversial history in global resource extraction. The company has faced repeated allegations of environmental and human rights abuses, including the destruction of sacred Aboriginal sites in Australia and pollution scandals in Papua New Guinea and Africa. In Serbia, Rio Tinto has operated since 2004, investing over $450 million in exploration and development of the Jadar site.
The Jadar project is expected to require approximately $2.4 billion in capital investment and could produce up to 58,000 tonnes of lithium carbonate annually, positioning Serbia as a key supplier for the European battery and EV industry. However, the project remains stalled amid ongoing legal, regulatory, and public opposition, with activists pledging to block any mining activity.
