Jul 19, 2024, 8:57 AM
Jul 19, 2024, 8:57 AM

BELGRADE, Serbia —

Highlights
  • German and Serbian authorities have reached a tentative deal on lithium extraction, aiming to reduce dependency on Chinese sources.
  • Chancellor Olaf Scholz expressed support for the agreement, indicating its potential benefits for the European Union's economy.
  • This agreement highlights the strategic shift towards securing critical mineral resources within Europe.
Story

German Chancellor Olaf Scholz has endorsed a new agreement between Serbia and the European Union aimed at facilitating lithium excavation, a project that could lessen Europe’s reliance on Chinese resources. The memorandum of understanding, signed during a “critical raw materials summit” in Belgrade, establishes a strategic partnership focused on sustainable raw materials, battery supply chains, and electric vehicles. Scholz emphasized the importance of discovering new raw material sources to maintain European sovereignty in a rapidly changing global landscape. The lithium project, essential for electric vehicle batteries, has faced significant opposition from environmentalists and local communities. Protests erupted in 2021, with thousands of demonstrators blocking roads and bridges to voice their concerns over potential environmental hazards linked to Rio Tinto’s excavation plans. This public outcry represented a significant challenge to the increasingly autocratic regime of Serbian President Aleksandar Vučić, who has faced criticism for his governance style. Despite the protests, Vučić hailed the agreement as a groundbreaking opportunity for Serbia, projecting that it would attract billions in investments to the developing nation. He expressed optimism about the deal's potential to foster economic growth and prosperity, stating, “This day fills me with great hope for our country.” As Serbia pursues EU membership, it continues to maintain strong ties with China and Russia, complicating its geopolitical stance. Analysts view the agreement as a significant endorsement of Vučić’s hard-line policies, further solidifying his position amid ongoing regional tensions.

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