In a bold move to fortify its economic ties with the European Union, Serbia has decided to offer lithium procurement opportunities to European automotive giants Mercedes-Benz, Volkswagen, and Stellantis. This strategic decision underscores Serbia’s preference for European partners over Chinese carmakers in the burgeoning electric vehicle (EV) market.
President Aleksandar Vucic revealed this development in an interview with the German daily Handelsblatt on Thursday. He emphasized the EU’s pressing need for lithium, a critical raw material for battery production, and expressed Serbia’s commitment to bolstering relations with the EU.
German Chancellor Olaf Scholz is set to visit Serbia on Friday to engage in discussions with President Vucic. The talks will center on critical raw materials essential for battery supply chains and the EV industry. This visit comes in the wake of Serbia reinstating a license for Rio Tinto, enabling the development of Europe’s largest lithium mine. This move is seen as a significant potential boost to the continent’s EV sector.
President Vucic highlighted Serbia’s ambitious plans, aiming for an annual lithium output of 58,000 tonnes. This volume could supply approximately 1.1 million electric vehicles, meeting about 17% of the European market’s demand. However, Vucic stressed that procurement deals would be contingent upon substantial lithium processing and battery production taking place within Serbia.
In a decisive step to align with the European Union, Serbia is opening its lithium reserves to leading European car manufacturers, namely Mercedes-Benz, Volkswagen, and Stellantis. President Aleksandar Vucic, in a recent interview with Handelsblatt, articulated Serbia’s strategy to prioritize European over Chinese carmakers.
Highlighting the EU’s dire need for lithium to fuel its electric vehicle ambitions, Vucic stated, “The EU needs lithium and we want to strengthen our ties with the EU.” This statement comes as German Chancellor Olaf Scholz prepares for his visit to Serbia on Friday. The visit is expected to delve into crucial discussions on raw materials for battery supply chains and the EV industry.
Serbia’s reinstatement of a license for Rio Tinto to develop Europe’s largest lithium mine is poised to significantly impact the continent’s EV industry. Vucic shared that Serbia targets an annual lithium production of 58,000 tonnes, sufficient for around 1.1 million electric vehicles, which could cater to about 17% of the European market.
However, Vucic emphasized that procurement agreements would hinge on ensuring that the bulk of lithium processing and battery production occurs within Serbia, reinforcing the country’s industrial capabilities and economic growth.
Serbia is set to become a pivotal player in the European electric vehicle industry by offering its lithium resources to major European car manufacturers. In an interview with Handelsblatt, President Aleksandar Vucic outlined Serbia’s plan to favor European carmakers like Mercedes-Benz, Volkswagen, and Stellantis over their Chinese counterparts.
“The EU needs lithium and we want to strengthen our ties with the EU,” Vucic told Handelsblatt. This strategic move coincides with German Chancellor Olaf Scholz’s upcoming visit to Serbia, where discussions will focus on essential raw materials for the EV industry’s battery supply chains.
The reinstatement of a license for Rio Tinto to develop Europe’s largest lithium mine marks a significant step for Serbia. Vucic announced that Serbia aims to produce 58,000 tonnes of lithium annually, enough to supply about 1.1 million electric vehicles or 17% of the European market. Importantly, Vucic noted that procurement deals would require that most lithium processing and battery production occur within Serbia, ensuring that the country reaps substantial economic benefits from this strategic resource.
By prioritizing European partnerships and fostering local production, Serbia is positioning itself as a crucial hub in the global EV supply chain, potentially transforming its economic landscape and reinforcing its ties with the European Union.
(Source: Financial Times | Luxembourg Times)
