EditEU raw materials diplomacy: Serbia as a test case
The Jadar project, led by Rio Tinto, faced public backlash over environmental risks
The European Union’s quest for critical raw materials (CRMs) to fuel its green and digital transitions has spotlighted Serbia, a resource-rich Balkan nation. This partnership, scrutinised in the Stiftung Wissenschaft und Politik (SWP) analysis “The EU’s Raw Materials Diplomacy: Serbia as a Test Case” by Melanie Müller, Lea Maria Strack, and Marina Vulović, tests the EU’s ability to secure supply chains while upholding sustainability and the rule of law.
Serbia boasts Europe’s largest lithium deposit at Jadar, as well as significant copper reserves, crucial for batteries and renewables. The EU’s 2023 Critical Raw Materials Act targets 10% domestic extraction, 40% processing, and 25% recycling by 2030. The aim is to reduce dependence on China, which dominates 60% of rare earth mining and 85% of processing. Serbia’s proximity and EU candidacy make it a prime candidate, yet governance challenges loom large.
The EU-Serbia CRM agreement, signed in July 2024, promises sustainable mining and value chain growth. However, Serbia’s weak rule of law, corruption, and authoritarian leanings complicate matters.
The Jadar project, led by British-Australian mining corporation Rio Tinto, faced public backlash over environmental risks, with permits revoked in 2022 after protests. Its 2024 reinstatement, amid EU pressure, underscores the tension between economic goals and local concerns.
They note that the EU seeks to balance CRM access with normative goals, offering Serbia investment and a “green” partnership while demanding environmental and democratic standards. Serbia, however, prioritises jobs and growth, often resisting EU conditions. Its ties with China—evident in the Zijin copper mine at Bor—and Russia give it leverage, contrasting with the EU’s stricter approach.
Sustainability is central, yet Serbia’s record raises doubts. The SWP authors highlight Jadar’s risks to farmland and water, noting that “the EU must enforce its Environmental, Social, and Governance (ESG) criteria” to maintain credibility. Validators such as German firms in a 2024 lithium deal must navigate these hazards, as must the EU in ensuring compliance.
Rule of law is equally critical.
Serbia ranks 104th globally in terms of corruption, according to Transparency International, with a judiciary that lacks independence. The authors argue that “the EU’s leverage via accession talks has waned” as Serbia stalls on reforms. Linking CRM cooperation to progress on Chapters 23 and 24 (judiciary and rights) of EU membership negotiations could strengthen accountability, though resistance persists.
The SWP analysis outlines three scenarios.
A pragmatic deal might secure CRMs while tolerating flaws, thereby risking EU values.
A values-driven stance could halt ties if standards falter, delaying supplies.
A balanced approach – integrating Serbia into EU chains with gradual reforms – requires “clear benchmarks” such as environmental audits and judicial progress, write Müller, Strack and Vulović.
For the EU, Serbia tests its raw materials diplomacy. Success hinges on incentives like trade benefits and effective enforcement. Failure could entrench Serbia as an illiberal partner or see Belgrade side with rivals. The authors conclude, “the EU must act decisively” to align its resources with its principles.
Find the full text of the report here.
Updated: May 13, 2025 - 15:24
