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Marijanti Babić, Country Head Serbia

Truth Will Open the Lithium Mine

The Jadar Project will only proceed once independent experts confirm that it can be implemented safely for the environment and public health, says Rio Tinto’s Marijanti Babić

Although drafts of environmental impact assessment studies conducted by independent experts indicate that the Jadar Project can be executed safely and in accordance with the highest standards, some citizens remain sceptical due to a persistent campaign opposing the project. In discussing how to regain the trust of local communities and the wider public, and what the development of this project would mean for Serbia economically and in its European and global positioning, Babić provides the following insights for CorD Magazine.

The Serbian Ministry of Environmental Protection recently issued a document defining the scope and content of the Environmental Impact Assessment Study for the Jadar Project. What does this document mean; and what are the next steps for your company?

— The decision on the scope and content of the study marks the start of a crucial phase in the project’s development.

This study must prove that Jadar can be implemented safely, for both the environment and human health. The decision requires Rio Tinto to submit a comprehensive study within one year, detailing the environmental impacts and proposing measures to mitigate or prevent potential adverse effects. The study will then be reviewed by a technical commission of independent experts, which will provide recommendations for the final decision.

The process also includes a public debate that will enable citizens to share their opinions and comments. Further permits, including construction approvals, will only be granted after the entire process confirms that the project meets all safety requirements.

Drafts of the environmental impact assessments, which have been available publicly since June, show that the Jadar Project can be implemented safely, under the highest standards. However, some citizens still believe this isn’t possible. What do you think is the cause of this mistrust?

— The mistrust largely stems from an intensive misinformation campaign that has plagued the project in recent years. The public has been exposed to inaccurate claims – not based on scientific evidence, but rather on fear and intentionally disseminated falsehoods.

It is astonishing that these falsehoods persist despite the publicly available studies, prepared by independent domestic and international experts, which clearly demonstrate that the project can be conducted under the highest environmental standards.

During the project’s four-year construction phase, 3,500 workers would be engaged, while 1,300 people will be permanently employed over the subsequent four decades

We firmly believe that discussions about a project with such significant developmental potential must be based on facts. That’s why we will continue to share accurate and transparent information, address all questions and actively engage both experts and the general public in an open, fact-based dialogue.

What is the sentiment regarding the mine’s potential in the communities of Loznica and Krupanj?

— The misinformation campaign has also influenced citizens in Loznica and Krupanj, where people are directly concerned about potential negative impacts of the project. However, most doubts have been addressed successfully through the over 100 meetings held with more than 3,500 members of the local community.

Citizens increasingly recognise the project as an opportunity for economic advancement, new jobs and more stable development. Jadar would be one of the largest employers in Loznica. During the four-year construction phase, the project would engage 3,500 workers, while 1,300 people would be permanently employed over the subsequent four decades.

It is estimated that project taxes and fees would double the Loznica municipal budget. This revenue creates opportunities for significant infrastructure projects, improved public services and the overall enhancement of quality of life in the region.

What would the development of the project mean for Serbia economically?

— Based on the results of various economic studies, we believe that Jadar has the potential to become a driving force in developing an integrated e-mobility value chain. A lithium mine would attract significant foreign investments in the sectors of battery, cathode and electric vehicle production, leading to new factories, job creation, the introduction of advanced technologies and the development of domestic workforce skills.

Analyses show that developing the entire e-mobility value chain could multiply the impact of the Jadar Project, potentially creating over 20,000 new and well-paid jobs, as well as attracting €6.2 billion in FDI.

In terms of direct contributions, the project is expected to generate a minimum of €180 million annually for the state through taxes and royalties, with an annual GDP contribution estimated at €695 million, equating to approximately 1% of Serbia’s GDP.

Ursula von der Leyen stated during her recent tour of the Western Balkans that Serbia could become a leader in the field of electric vehicles thanks to its lithium resources, and pledged her support. How would this influence Serbia’s position in Europe and globally?

— Lithium is a strategic mineral for the 21st-century economy that’s essential for battery production and the development of electric vehicles, making it a cornerstone of the global green transition. Developing this resource would not only bring economic progress through foreign investments and job creation, but would also strengthen Serbia’s geostrategic position as a reliable partner in joint European initiatives.

While sodiumion batteries are an interesting technology, they cannot compete with lithium-ion batteries in terms of energy density and performance

By becoming a key player in lithium production and sustainable technologies, Serbia would have the opportunity to participate in crafting innovative industrial policies, thereby boosting its influence and position in global processes, while simultaneously improving living standards for its citizens.

The foundation for this has been established through the signing of the Strategic Partnership Memorandum between Serbia and the EU in the field of critical raw materials, highlighting the strategic importance of lithium for both our country and the European Union.

Opponents of mining often cite research claiming that lithium batteries are obsolete. What is your response to this?

— Lithium-ion batteries remain an irreplaceable foundation of the green transition, and they are expected to remain so for decades to come, given their crucial role in the development of e-mobility. Sodium-ion batteries are not a viable alternative. This is a misconception that we often encounter.

While they represent an interesting technology, sodium-ion batteries cannot compete with lithium-ion batteries in terms of energy density and performance.

Moreover, lithium is central to the latest solid-state battery technologies, which promise longer lifespans, greater range and faster charging. This ensures that this lightest metal will continue to play a key role in building a cleaner and more sustainable future.

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