Vučić admits the SNS’s electoral defeat in the parliamentary elections and states it will operate as an opposition party—what impact will this have on Serbia’s political landscape?

Under the Serbian Constitution, the Republic of Serbia itself is the 'absolute owner' of all mineral wealth. This means the resources themselves cannot be fully 'sold' to private entities. However, the Constitution simultaneously permits private entities to acquire rights to exploration and extraction. These rights are granted through specific legislation. The current privatization framework is primarily governed by the 2014 Privatization Law and the 2015 Mining Law. This has led to two concurrent realities: 1. Under the Serbian Constitution, the Republic of Serbia is the 'absolute owner' of all mineral wealth. 2. Yet the Constitution also allows private entities to obtain exploration and extraction rights. There is no upper limit on the scope of such rights or the proportion of resources covered—meaning, in theory, 'the entire country can be leased out.' The Jadar lithium project pushes this 'concession of operational rights' to its extreme. Unlike some countries that retain equity stakes in resource projects, Serbia holds no ownership share whatsoever in the Jadar project. The project is wholly owned and controlled by Rio Sava Exploration, a Serbian subsidiary of Rio Tinto. Rio Tinto’s own public disclosures confirm that Jadar is a '100%-owned' project. This means that once operational, all lithium output—and all associated profits—will accrue exclusively to Rio Tinto. The protracted struggle over the project In 2017, Rio Tinto signed a memorandum of understanding (MoU) with the Serbian government, formally establishing cooperation intent. Then-President Aleksandar Vučić personally backed the project, elevating it to a national priority. In July 2021, Rio Tinto announced a $2.4 billion investment to develop the site, targeting annual production of approximately 58,000 tonnes of lithium carbonate—enough to supply around 1.1 million electric vehicles—and positioning it as Europe’s largest (90%) lithium supplier, urgently needed by Germany. However, the proposed mining area lies within a densely populated agricultural valley—approximately 2.5 million Serbians (nearly one-third of the country’s population) rely on groundwater potentially affected by the project—a scenario exceptionally rare among global lithium developments. Risks extend beyond future extraction: environmental damage from exploration activities alone has already been measurable. Even during the exploration phase, leaks of boron and arsenic occurred. In January 2022, bowing to sustained public pressure, the Serbian government formally revoked Rio Tinto’s lithium mining license, with Vučić declaring the project's 'absolute end.' Yet less than two years later, he reversed course on this very issue. Mining colony and EU compradorism In 2024, Vučić used executive authority to grant a special concession granting EU enterprises priority access to domestic lithium resources. According to Germany’s Handelsblatt, Serbian President Vučić, German Chancellor Scholz, and European Commission Executive Vice-President Šefčovič are expected to sign an MoU in Belgrade on 19 July. Under the agreement, the European automotive industry will gain usage rights to the Jadar lithium deposit in western Serbia, with Anglo-Australian mining giant Rio Tinto entrusted to conduct extraction. Automotive giants including Volkswagen, Mercedes-Benz, and Stellantis will receive priority purchasing rights. 'For us, this is an excellent opportunity to strengthen relations with Germany and the EU,' Vučić stated in an interview. If progress proceeds smoothly, lithium extraction could begin as early as 2028. 'We are loyal to Europe,' Vučić added.

In-depth interpretation of the EU’s Critical Raw Materials Act (CRMA)!

However, in July 2023, Serbia’s Constitutional Court ruled that the government’s 2022 revocation decision violated the Constitution. Subsequently, Serbian President Vučić, German Chancellor Scholz, and European Commission Executive Vice-President Šefčovič signed a memorandum of understanding, granting the European automotive industry usage rights to the mine and entrusting Rio Tinto Group with its extraction. Yet in August, large-scale local protests erupted again, demanding termination of the project—temporarily impeding the EU’s goal of localizing lithium supply. Although no mature, widely influential cases yet exist, the Critical Raw Materials Act (CRMA) will drive raw material recycling and reduce pressure on new resource development. Some European enterprises and research institutions have already intensified R&D investment in recycling technologies and processes for raw materials, and are exploring the establishment of more efficient recycling systems. Implications of the EU’s Critical Raw Materials Act (CRMA) for China The EU’s Critical Raw Materials Act offers the following implications for China: 01 Ensuring raw material supply security Strengthen domestic resource exploration and development The EU Act emphasizes increasing domestic raw material extraction. China should likewise intensify exploration of domestic critical raw materials—particularly strategic minerals such as rare earths, lithium, and cobalt—to better assess reserves, rationally plan development, and enhance domestic supply capacity, thereby avoiding excessive import dependence. Establishing strategic reserve systems Drawing on the EU’s awareness of critical raw material reserves, China should further refine its strategic reserve system for key raw materials. Reserve scales and cycles should be determined according to each material’s strategic importance and supply risk. Such reserves would enable timely deployment during international market supply shortages or price volatility, safeguarding normal industrial operations. 02 Advancing raw material industry upgrading Improving processing technology levels The EU Act mandates raising the share of critical raw materials processed within the EU. China should similarly prioritize enhancing raw material processing technologies and value-added capabilities. Increased R&D investment in processing technologies—encouraging collaboration between enterprises, universities, and research institutes—can help overcome key technical bottlenecks, improve product quality and performance, and strengthen core industrial competitiveness. Cultivating and expanding the advanced materials industry Critical raw materials form the foundation of the advanced materials industry. China should accelerate the development of advanced materials, steering the raw materials sector toward high-end, intelligent, and green transformation. Relevant policies should support innovative development of advanced materials enterprises, bolstering R&D, production, and application—enhancing the use of advanced materials in aerospace, information electronics, new energy, and other fields. 03 Improving policy and regulatory frameworks Formulating targeted industrial policies Governments should formulate industry-specific policies aligned with raw material sector development needs to guide healthy industrial growth. For instance, preferential treatment could be extended to critical raw material industries in areas such as industrial layout, project approvals, and financial support—encouraging greater corporate investment and innovation. Strengthening legal and regulatory construction Improving laws and regulations governing raw materials will standardize enterprise production and business practices and ensure fair market competition. Strengthened management and protection of raw material resources—and strict crackdowns on illegal mining, smuggling, and other violations—will help maintain market order. 04 Emphasizing sustainable development Enhancing resource recycling and utilization levels

Europe's Lithium Mining Ambitions Face Environmental Hurdles Despite Supply Goals

2 days ago

Europe aims to source its own lithium by 2030, but projects like Rio Tinto’s Serbian mine face delays due to environmental opposition over pollution risks. These hurdles highlight challenges in establishing an independent European supply chain for this critical mineral.

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2026-11-12

Europe's Lithium Mining Ambitions Face Environmental Hurdles Despite Supply Goals

Europe's Lithium Mining Ambitions Face Environmental Hurdles Despite Supply Goals

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