(new: details, Scholz quotes)

BELGRADE (dpa-AFX) - The European Union and Serbia want to jointly develop one of Europe's largest lithium deposits, worth several billion euros, for the production of batteries, primarily for electric cars.

In the presence of German Chancellor Olaf Scholz, Serbian President Aleksandar Vucic and EU Commission Vice-President Maros Sefcovic, a declaration of intent was signed in Belgrade, which is intended to enable the environmentally friendly extraction of the highly sought-after light metal in the Jadar Valley in western Serbia. However, there is considerable opposition to the project from environmentalists in Serbia.

Scholz assured that it would meet the "highest standards" of environmental protection. Sefcovic spoke of a "historic day" and saw the agreement as Serbia's step towards the EU. Vucic was the most euphoric after the signing ceremony: "For us, this will be a turning point and a quantum leap into the future, something we would not have thought possible."

Largest direct investment in Serbia's history

Both sides have a lot at stake in the raw materials agreement. For Serbia, it is the largest foreign direct investment in its history. The aim of the government in Belgrade is to establish a value chain for electromobility, from the mining of raw materials to battery production. This means state revenue, jobs and investments, which Vucic estimated at six billion euros. Among other things, Scholz had assured him that a battery factory would also be built in Serbia.

China got the short end of the stick

Germany and the EU primarily want to reduce their dependence on China with this project. The world's second-largest economy controls a large part of the mining and processing of lithium worldwide. Scholz says that this dependency cannot be seen as a problem while at the same time shying away from own mining projects. "We have to get this right now," he said.

China had also made efforts to exploit the deposits in Serbia, and President Xi Jinping even traveled to Belgrade in May. The fact that the Europeans have now prevailed is being celebrated by Germany as a great success, which could perhaps also have a knock-on effect on other raw materials projects.

Lithium for more than one million e-cars per year

The agreement has a long history. Three years ago, Australian mining giant Rio Tinto announced its intention to invest billions in the project. According to the company's estimates, the planned mine could produce 58,000 tons of lithium per year. According to Serbian media reports, this would meet the needs of 1.1 million electric vehicles, which corresponds to around 17 percent of European production. Car manufacturers Mercedes-Benz and Stellantis are already negotiating a stake with Rio Tinto. These two and other companies also signed letters of intent on Friday.

Environmentalists are concerned about drinking water supplies

However, the project is highly controversial. Environmentalists criticize, among other things, that lithium mining contaminates the groundwater with heavy metals and therefore poses a risk to the drinking water supply for local residents. A representative of the environmental organization Ecological Uprising, Aleksandar Jovanovic Cuta, called the agreement a "death sentence" for the mining region. Opponents of the project actually wanted to demonstrate in front of the presidential palace during the signing ceremony, but the area was cordoned off.

Serbian opposition accuses EU states of pandering to Vucic

In addition to criticism from environmentalists, there are also constitutional concerns about the project. The Serbian government cleared the way for the signing just a few days ago. It cited a recent ruling by the Constitutional Court, which reversed the planning freeze decided in 2022 following mass protests.

The handling of lithium has become one of the most important issues for the Serbian opposition. It accuses EU states such as Germany of pandering to Vucic because of Serbia's raw material deposits. The Serbian president is accused of dismantling democracy and the rule of law as well as having close ties to Russia.

Scholz thanks the "good Lord" - Vucic sends fighter jet escort

Scholz refrained from openly addressing the problems at the signing ceremony. However, he reminded everyone that anyone who wanted to join the European Union had to "make every effort to meet the requirements" - especially when it came to the rule of law, democracy and freedom of opinion.

Otherwise, the day was dominated by harmony between Scholz and Vucic, who even had the chancellor escorted by Serbian fighter jets on his arrival and departure as a mark of respect. For his part, the Chancellor was unusually pathetic by his standards at the press conference. "I want to say it for those who are a bit religious and those who at least like to orient themselves by these images," said the SPD politician, who has left the church himself. "The good Lord has made it possible for one of the most sought-after raw materials in the world to be in this country in great quality. And perhaps it can also be used as luck for the country."/mfi/DP/nas