Low lithium market prices have forced Rio Tinto to indicate in its six-month report that production will need to be “incentivized”, a euphemism for subsidies. While the company claims the Jadar project has so far been self-funded, it does not rule out applying for government subsidies in the future. Serbia has already invested significantly in infrastructure that could support the project if it proceeds.
Lithium prices have dropped by 80% compared to their 2023 peak, prompting Rio Tinto’s Jadar project director, Čeda Bluit, to review mining costs in Serbia. Although it is unclear if the government will directly finance the mine, Serbia is supporting the project through infrastructure development under a special-purpose Spatial Plan. Rio Tinto notes that broader infrastructure projects are independent of the mine, and the government will not fund infrastructure solely for the company.
Planned Serbian investments include roads, highways, power facilities, and gas networks near the proposed mine, such as the Ruma–Šabac highway, Šabac–Loznica expressway, and upgrades to regional railways, totaling hundreds of millions of euros. Critics argue these investments may primarily serve the foreign company’s interests.
Experts warn that Serbia will receive low mining royalties, while Rio Tinto could earn €12–16 billion over 30 years of extraction, with Serbia gaining only €400–800 million. Environmental and social costs are estimated at a minimum of €16 billion. Alternative lithium sources, such as lithium from water or sodium-ion batteries, are noted as cheaper and more environmentally friendly compared to rock-derived lithium.
