Scholz triumphs in Belgrade. Serbia abandons Russia and China. They sign a key agreement on “white gold”

German Chancellor Olaf Scholz and European Commission Vice-President for the Green Deal Maroš Szefčović have arrived in Belgrade. Their visit is related to the finalization of negotiations between the European Union and Serbia on lithium extraction. On Friday (19 July), representatives of Brussels signed a memorandum with the authorities of that country on a partnership on the supply of critical raw materials. It will primarily concern lithium, which is key for the German automotive industry.

Serbia and EU sign memorandum on lithium supplies. German car companies among others will benefit

Although Olaf Scholz was only accompanying the vice-president of the European Commission, his presence indicates the importance Germany attaches to obtaining raw materials from sources other than China. “This important project can also contribute to ensuring that Europe can maintain its sovereignty in a changing world,” the German chancellor said.

In exchange for supplies of raw materials, Serbia can count on an influx of foreign investments, primarily from German corporations. Today, several of them signed letters of intent in Belgrade. “This will open the door to the largest foreign direct investments in Serbia’s history,” said Maroš Ševčić, deputy head of the European Commission.

Serbia begins work on lithium mine, initiative sparked mass protests

Lithium mining is a controversial issue in Serbia itself, with environmental and public health concerns. A project to build a mine in the Jadar Valley, which is believed to contain the largest lithium deposits in Europe, was halted in 2022 following mass protests by citizens and activists.

– There is still a long way to go before the mine opens and we will not hide anything from our citizens at any point – assured Serbian President Aleksander Vucic. The state has so far resumed projects for at least two lithium mines. It is estimated that the plant in the Jadar Valley could produce 58 thousand tons of lithium per year. This amount would allow for the production of batteries for 1.1 million electric cars. The total value of lithium reserves in Serbia could be as much as four billion euros. The construction of the mine is to be carried out by the Anglo-Australian conglomerate Rio Tinto.

European Commissioner for Enlargement: Serbia confirms its path to EU membership

As the portal notes, Friday’s (July 19) agreement between the EU and Serbia is treated by commentators as a signal of the Belgrade government’s turn towards Western countries. The country has so far maintained close relations with Russia and China. The latter power, which is among the world’s leading producers of lithium, has most likely also tried to secure access to Serbian deposits of the raw material. As indicated by , shortly before receiving the EU delegation, President Vucic assured that he would not sell lithium to Chinese producers, focusing instead on European automotive concerns such as Mercedes-Benz, Volkswagen and Stellantis.

Maroš Ševčić assessed the agreement with Serbia as proof of a “joint commitment” to the green transformation. “Through strategic cooperation in these key sectors, we are unlocking the huge potential for sustainable development and innovation. At the same time, we are strengthening Serbia’s integration with the EU market and increasing its economic, social and environmental convergence with the EU,” he said. Olivér Várhelyi, European Commissioner for Neighbourhood and Enlargement, also said that the agreement “confirms Serbia’s path to the European Union.”