Germany's Scholz Praises Lithium-Mining Deal With Serbia, Says Environment Will Be Protected

(Left to right) German Chancellor Olaf Scholz, Serbian President Aleksandar Vucic, and European Commission Vice President Maros Sefcovic meet in Belgrade on July 19.

German Chancellor Olaf Scholz on July 19 said a proposed lithium-mining project in Serbia was "an important European project" that is also good for Serbia, despite opposition from environmental activists and opposition parties.

Scholz attended a Critical Raw Materials Summit in Belgrade, where a memorandum of understanding between the European Union and the Serbian government on a "strategic partnership" on sustainable raw materials, battery supply chains, and electric vehicles was signed.

The mining of lithium is necessary for Europe "to remain sovereign in a changing world and not be dependent on others," Scholz said after the signing ceremony.

Germany is seeking to secure lithium for the manufacture of electric vehicles as the EU aims to reduce its dependence on imports from China of the critical substance used in batteries for electric vehicles.

Scholz and European Commission Vice President Maros Sefcovic attended the summit in Belgrade three days after the Serbian government reinstated a plan for the lithium mine in the west of the country near Jadar operated by the Anglo-Australian metals and mining giant Rio Tinto.

SEE ALSO: Serbian Government Restarts Rio Tinto's Contentious Lithium Mine Project

"I'm glad the decision was made," Scholz said, speaking at a joint news conference with Sefcovic and Serbian President Aleksandar Vucic. "I admit, this decision required courage, but it was made at the right moment."

Scholz pledged that mining would be carried out "in compliance with the highest standards of environmental protection, and Germany will help in this."

Asked how Germany can guarantee environmental protection, Scholz said that he asked the president of Rio Tinto to respect all environmental standards during exploitation and said that he had received guarantees for this.

"The standards for protecting the climate, the environment, and biodiversity are high. That's why I spoke very early with the head of Rio Tinto," Scholz said.

As the summit took place, environmental activists opposed to lithium mining gathered near the venue in central Belgrade. One banner said the EU should "leave lithium and democracy to the Serbian people."

The Serbian government rejected the project in 2022 after massive environmental protests, but on July 16 it reinstated the plan days after the Balkan state's Constitutional Court said the government of then-Prime Minister Ana Brnabic had acted unconstitutionally when it withdrew permits for Rio Tinto.

SEE ALSO: EU, U.S. React To Serbia Banning Entry To Certain Foreign Nationals  

Scholz said that among the other reasons to support the project are that it will create new jobs in Serbia and help Europe meet its climate goals.

Sefcovic said that it was a historic day for both Serbia and the European Union.

"This will open the door for investments in Serbia. European companies will come and create jobs and create new economic growth," he said.

Serbia will occupy a central place in the most important strategic value chains and will be the first country in Europe with the entire value chain once batteries are produced in Serbia, Sefcovic said.

According to him, the first goal is to strengthen the Serbian economy with high-quality jobs throughout the supply chain.

He also said the memorandum of understanding and another signed agreement will further highlight the partnership between the EU and Serbia, which is a candidate for membership in the EU.

Vucic said he was proud of "what we started today," calling the memorandum of understanding important for Europe and Germany, but most important for Serbia. "This represents a turning point and a big change for us."

He said that lithium mining represented billions of dollars in direct foreign investment and Serbia should not miss this chance.

He added that Serbia did not hide the difficulties the government is facing in its support for the mining project but insisted that it was doing everything transparently.

"Never at any stage -- and there is a long way to the opening of the mine -- will we hide anything from our people," he added.

With reporting by AP