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CWA # 1471, 16 September 2024
NIAS Europe Studies
Serbia: Why are people protesting over lithium mining?

  Samruddhi Pathak

Lithium was discovered in the western part of Serbia in 2004 by Rio Tinto, the world's second-largest mining company. 

In July 2024, the EU and Serbia signed an agreement where the EU can easily procure Serbian lithium. Later, Rio Tinto announced an investment of USD 2.4 million for extraction of lithium. According to the company estimate, the expected life of the lithium mine would be 40 years, and it will produce 2.3 tonnes of battery-grade lithium carbonate and 1,60,000 tonnes of Boric acid annually. The EU has been eyeing the lithium deposits in Serbia for the EV industry.

“Rio Tinto get out of Serbia”: Why are people protesting against the mining?
During July and August, Serbia witnessed protests against the mining rights benefitted by the European companies for lithium mines. Demonstrators shouted slogans like, “Rio Tinto get out of Serbia” and “We want Rio Tinto out.” According to Serbia’s Interior Ministry, almost 27,000 citizens participated in the protests. 

The protests were specifically against Rio Tinto, a mining company headquartered in London. Rio Tinto was given the mining project in 2019. However, the government imposed a ban on lithium mining in 2022 but the Supreme Court overturned the ban in June 2024. Protestors argue that lithium mining has put Serbians’ lives in the Jadar valley at risk and Rio Tinto’s tainted image of operating mines is concerning. 

Biljana Djordjevic, leader of the Green-left movement, said that Serbians fear that their lives are being put at risk for European businesses. According to Djordjevic, Serbian lithium would be used by European companies for EV production, while most of the population in Serbia would not be able to afford those EVs. Thus, ultimately, their resources will be used by other countries for their profits. 

Protestors fear that lithium mining will lead to water contamination and scarcity in the region. They also fear the loss of biodiversity. Mining will also require mass deforestation in the area endangering indigenous communities since Jadar Valley has substantial forest and agricultural land. 

Jadar Valley is one of the few lithium mines which is inhabited and consists of agricultural areas. This puts the population settled in the Jadar region at an increased risk of soil erosion and land degradation. The waste produced in Jadar valley due to mining is even more hazardous since the valley has high deposits of Boron and Arsenic as well. Apart from these deposits, processing lithium ores requires highly concentrated Sulphuric acid. 

What does the government want?
The government of Serbia wants to use its lithium reserves as leverage for its candidature for EU membership. Since the Kosovo war in 1999, Serbia has been trying to become a part of the EU. The Government also looks at the deal as a way to generate jobs, skilled labour, creation of infrastructure and Foreign Direct Investment. The deal will bring industrial actors in the EU closer to those in Serbia facilitating robust cooperation in the energy sector. The summit in Belgrade, where the agreement on lithium mining was signed, was also attended by executives of Mercedes and Stellantis. Serbia can satiate ninety per cent of Europe’s lithium demand. Europe is also the second largest market for lithium after China.

What are the EU's interests?
According to the European Commission, the demand for lithium will grow 60 times by 2050. The domestic reserves among the EU countries are not adequate to accommodate the demand. Lithium, also referred to as white gold, is crucial for making batteries. Most companies and people today prefer storing energy in batteries and moving away from non-renewable resources. The main drivers of demand will be electric vehicles, an industry that German car, truck and bus manufacturers are eyeing. The EU launched the Green Deal in 2019 with the objective to achieve net-zero emissions by 2050. Under the Green Deal, the Green Deal Industrial Plan (GDIP) was introduced. GDIP mandates the EU members to build partnerships with potential suppliers and diversify sources, secure new trade agreements with resource rich countries and promote public-private partnerships. 

The Russia-Ukraine War has disrupted the energy supply to Europe compelling them to accelerate their search for alternative options. Lithium emerges as the most investor-friendly due to its industrial scope. Serbia presents a logistical advantage as well. Since most lithium, currently, is imported from the Lithium Triangle consisting of South American nations, Chile, Argentina and Bolivia. Moreover, China controls most lithium supply chains since it is the biggest importer of lithium. Import from Serbia will eliminate these logistical issues. 

Since Serbia is a part of the European continent, obtaining a mining licence and extracting lithium in Serbia provides sovereignty to Europe as a continent. Even though the Republic of Serbia is not a part of the EU, it is a candidate country and plans to join the Union by 2030. As per the Critical Raw Material Act, at least 10 per cent of the extracted raw materials should be through local supplies. Thus, the deal serves Europe’s protectionist motivations too.

References
Daniel Boffey, “Rio Tinto’s past casts a shadow over Serbia’s hopes of a lithium revolution,” The Guardian, 19 November 2021
Elida Moreno, “Hundreds protest at First Quantum's Panama copper mine,” Reuters, 10 January 2024
Engjellushe Morina, “Finding friends: Europe, Serbia, and the lithium catalyst,” European Council of Foreign Relations, 26 July 2024
Fabian Cambero and Daina Beth Solomon, “BHP removes striking workers at huge Chile copper mine, output at risk,” Reuters, 14 August 2024
Lucía Bárcena, “Serbia’s lithium gamble,” Transnational Institute, 04 September 2024
Sofia Ferreira Santos, “Thousands protest against lithium mining in Serbia,” BBC, 11 August 2024
“Thousands protest in Serbia over crackdown on anti-lithium activists,” Business Standard, 02 September 2024
Thomas Biesheuel, “Rio Tinto’s Lithium Patience Finally Pays Off in Serbia,” Bloomberg, 19 July 2024
Misha Savic, “Serbia’s top court voids ban on Rio Tinto’s lithium project,” Bloomberg, 11 July 2024
Vera, M.L., Torres, W.R., Galli, C.I. et al, “Environmental impact of direct lithium extraction from brines” Nature, Vol. 4, 149–165, 23 February 2023

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