BELGRADE, Serbia — German Chancellor Olaf Scholz praised a tentative deal between Serbia and the European Union signed on Friday that paves the way in which for the disputed excavation of lithium, a mega project that would reduce Europe’s dependency on China but one which has been fiercely criticized by environmentalists and opposition groups.
Scholz attended a “critical raw materials summit” within the Serbian capital where a memorandum of understanding between the EU and Serbia’s government on a “strategic partnership” on sustainable raw materials, battery supply chains and electric vehicles was signed.
He said after the signing ceremony that “that is a crucial European project,” adding that it’s crucial for Europe “to stay sovereign in a changing world and never be depending on others, which is why recent sources of raw materials needs to be discovered.”
“I’m glad the choice was made,” he said. “I admit, this decision required courage, nevertheless it was made at the correct moment,” Scholz said.
Germany, the most important carmaker in Europe, is looking for to secure lithium for its electric vehicle makers as the European Union struggles to scale back its dependence on imports from China. Lithium is a critical substance in making batteries for electric vehicles
China currently dominates the provision chain for lithium-ion batteries.
“This can be a project that is sweet because it should be developed in an environmentally compatible way and is sweet since it creates economic activity and prosperity where world history made it possible to bury raw material within the earth, and we are actually extracting it,” Scholz said.
Serbia’s constitutional court earlier this month overturned a previous ruling to cancel a $2.4 billion mining project launched by British-Australian mining giant Rio Tinto within the western Serbian valley of Jadar, which is believed to be the most important lithium discovery in Europe.
The Serbian government’s decision to cancel the excavation plans got here after hundreds of protesters in Belgrade and elsewhere in Serbia blocked major roads and bridges in 2021 to oppose Rio Tinto’s plans due to potential hazards to the environment. The protests were the largest challenge yet to the increasingly autocratic rule of Serbian President Aleksandar Vucic.
A heavy police presence on Friday prevented groups of protesters from coming near the federal government constructing in the brand new a part of Belgrade where the signing ceremony took place.
Vucic has said the lithium excavation will only go ahead if automakers and battery producers in Germany and other EU states construct factories in Serbia, somewhat than directly exporting raw materials to those countries.
“This present day fills me with great hope for our country,” Vucic said. This shall be a turning point and an enormous change and a quantum leap into the longer term of Serbia.”
Serbia is formally looking for EU membership, but has maintained close political and economic ties with China and Russia, despite Moscow’s aggression in Ukraine. The signed agreement is seen by analysts as a significant boost for Vucic and his hard-line policies.
“I actually consider that we’re making historic opportunity for Serbia and the EU,” said the European Commission vice chairman, Maros Sefcovic, who signed the memorandum of understanding within the name of the EU.
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Associated Press writers Jovana Gec in Belgrade, Serbia, and Geir Moulson in Berlin contributed to this story.
This Article First Appeared At www.autoblog.com
