Germany talks with Serbia over lithium deposits

Bloomberg has informed that German Chancellor Olaf Scholz is set to visit Serbia this week to secure vital lithium supplies essential for Germany’s energy transition and automotive industry.
Although details are still under wraps, this visit underscores the importance of lithium in Europe’s energy strategy.

Key points

Serbia aims to cooperate closely with EU member states on lithium extraction, aligning with its aspiration to join the European Union.

Infrastructure Minister Goran Vesić highlighted the significance of this collaboration, emphasizing Serbia’s future EU membership. He has stated: “Serbia will be a member of the European Union one day, therefore we want to cooperate on this and other issues with our EU partners”

The potential deal comes on the heels of Serbia’s top court overturning a 2022 decision to halt a $2.4 billion lithium project by Rio Tinto due to environmental concerns.

Why it matters

The proposed mine could produce about 58,000 tons of lithium annually, though it won’t start before 2028 and will require stringent environmental protections.

The European Union relies entirely on lithium imports, making this a crucial step in securing the raw materials needed for its energy goals.
Impact on Germany:

This agreement would significantly boost Germany’s plans to shift away from gas and coal.

It would support the electrification of Germany’s car industry, complementing domestic lithium projects by startups like Vulcan Energy Resources.