Jul 16, 2024, 6:15 PM
Jul 16, 2024, 6:15 PM

Germany and Serbia Lithium Deal

Highlights
  • Germany and Serbia are set to sign a lithium deal in Belgrade.
  • The European Commission will also attend the signing ceremony on Friday.
  • The collaboration highlights the growing importance of lithium in the global economy.
Story

German Chancellor Olaf Scholz is set to make a surprise visit to Belgrade on Friday to witness the signing of a cooperation agreement between the European Union and Serbia regarding the importation of critical minerals, including lithium. This agreement is pivotal for the EU's digital and green transition efforts. Scholz's visit comes amid Serbia's recent decision to resume a controversial lithium mining project, which had been previously halted by a constitutional court ruling. Serbia's President Aleksandar Vučić has faced isolation from European leaders due to his ties with Russia and China, ongoing tensions with Kosovo, and allegations of election fraud. Scholz's unexpected trip highlights a potential shift in diplomatic relations, as it is uncommon for him to undertake such visits on short notice. The European Commission's Vice President Maroš Šefčovič is also expected to attend the signing ceremony, although Commission President Ursula von der Leyen's participation remains uncertain due to pending parliamentary votes. The Jadar mine, located near Loznica in western Serbia, is significant as it contains some of the largest lithium reserves in Europe, potentially supplying 17% of the continent's electric vehicle production. However, the approval of the mining project has raised concerns among opposition figures, such as Radomir Lazović of the Serbian Green–Left Front party, who allege that political influence played a role in the court's decision. The situation underscores the complex interplay of environmental, political, and economic factors in the region.

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