Rio Tinto Revises Cost of Serbia Lithium Project Amid Environmental Protests

Rio Tinto is revising the financial framework for its Jadar lithium project in Serbia, a venture designated by the European Commission as one of 13 strategic critical material projects outside the EU. The project, which could supply up to 90% of Europe's current lithium demand, faces strong opposition from local environmental activists concerned about health, nature, and water pollution, leading to significant protests and temporary revocation of exploration licenses, later reinstated by Serbia's Constitutional Court. The European Commission granted strategic status solely for the extraction portion, despite Rio Tinto's plans to build a processing plant, emphasizing the need for secure and diversified raw material supply chains to support EU industrial and climate goals. Rio Tinto must now update the project's capital cost and schedule to comply with EU environmental and human rights standards, although the final revised budget and timeline remain uncertain pending licensing. Despite a current surplus in the global lithium market due to weaker battery demand, long-term demand projections remain positive, and Rio Tinto continues to expand its lithium portfolio with significant acquisitions and investments. The project highlights tensions between advancing green technology resource needs and addressing local environmental and social concerns in Serbia.