EU and Serbia Sign Battery Deal

On July 19, the European Union and Serbia are poised to sign a significant agreement regarding the supply of battery materials during a critical raw materials summit. This development follows Serbia's recent decision to allow the resumption of operations at a contentious lithium mining project, which is vital for the production of electric vehicle batteries. The project, located near Loznica and operated by Rio Tinto, has been a source of political tension in Serbia, particularly after the government revoked its permits in 2022 due to widespread protests over environmental concerns. The Serbian government’s decision to restart the mining project comes after a constitutional court ruling deemed the permit cancellations unconstitutional. This ruling has opened the door for the government to move forward with the project, which is seen as essential for supporting Germany's automotive sector in its transition to greener technologies. German government spokesman Steffen Hebestreit emphasized that the deal is framed within the context of sustainable lithium extraction practices in Serbia. Critics of the mining initiative argue that the Serbian government has a poor track record in regulating industrial activities and that the project poses significant environmental risks. Protests have erupted over fears regarding public health and ecological impacts, leading to the initial halt of the project. Serbian President Aleksandar Vučić has indicated that lithium mining could commence as early as 2028, contingent on the new agreement ensuring that most lithium exports are tied to Serbian-produced batteries. As Serbia continues its candidacy for European Union membership, the government asserts that this partnership will enhance political relations and foster long-term economic growth, which is crucial for Serbia's EU aspirations. However, the normalization of relations with Kosovo remains a significant hurdle in the accession process.