Serbia Eyes Lithium Deals With Major Automakers

by TTAC News Staff

Published: July 19th, 2024

Image: Mercedes

Mercedes-Benz Group AG and Stellantis NV are talking with Serbia’s government about investing in lithium-processing and EV battery production.

Bloomberg reports this move could provide fresh support for what might become Europe’s largest lithium mine. These carmakers, who are already involved in a battery joint venture, are looking to follow Rio Tinto Group’s lead in the proposed $2.4 billion mine in Serbia by also developing processing and EV battery output.

The Serbian government has been pushing for a comprehensive lithium industry rather than just exporting raw materials. This strategy aims to maximize the value derived from the country’s natural resources. Currently, the European Union relies entirely on imported lithium to make batteries. The EU has been trying to develop its own EV supply chain to reduce dependency on imports from Asia.

Image: Stellantis

Serbia plans to sign a framework agreement with the EU on mineral raw materials. President Aleksandar Vucic announced that the initial agreement includes establishing a processing industry and battery production. This would ensure that materials and EVs produced in Serbia qualify for sale in the EU without attracting tariffs. Executives from Mercedes and Stellantis, along with German Chancellor Olaf Scholz, are expected in Serbia soon and may sign letters of intent to develop the country’s industry. Executives from Rio Tinto are also expected to attend.

The slow adoption of EVs has resulted in several battery manufacturing projects being delayed. For instance, Mercedes and Stellantis have postponed two of their three planned battery plants in Europe, which were expected to cost a total of €7 billion, due to lower-than-expected vehicle demand. Even if Europe establishes its battery industry, it remains dependent on a raw materials and processing supply chain dominated by China.

This article was co-written using AI and was then heavily edited and optimized by our editorial team.

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