The European Union’s green transition aims to reduce the economy’s impact on climate change, and lithium plays a critical role in this effort. However, in Serbia, protests have erupted against a potential lithium mine in Jadar, with fears that it could harm the environment and public health. Despite these concerns, the global demand for this whitish alkaline metal shows no signs of slowing down.
The need for lithium in Europe
Lithium is indispensable for the automotive industry’s shift towards more environmentally friendly technologies. Countries like Germany are working to produce and process lithium domestically to support this transition.
Although there is currently no lithium mining or processing in Germany, at least three projects are in development, with production expected to begin in the near future. According to Michael Schmidt, a geologist at the German Mineral Resources Agency (DERA), processing could start as early as late 2024 or early 2025.
Germany’s two advanced lithium projects focus on different methods of extraction. One project by Vulkan Energy Resources in the Upper Rhine Basin aims to extract lithium from groundwater, while the other, located in the Ore Mountains on the border with the Czech Republic, involves traditional mining of lithium from solid rock.
Lithium extraction in Germany
In Germany, lithium is found in rocks and groundwater, and the extraction process varies depending on the location. In the Upper Rhine Basin, the Vulkan Energy Resources project could extract lithium from geothermal brines as a by-product of heat and electricity production. This method presents unique challenges related to the technologies used.
The other significant project is in the Ore Mountains, where lithium is extracted from solid rock. This traditional mining method is more straightforward but still requires careful adherence to environmental and safety standards.
Both projects are subject to strict environmental regulations and safety standards defined by German law. The Cinvladj company, which manages the Ore Mountains project, initially estimated a production of 12,000 tons per year but recently announced plans to increase this to 16,000-18,000 tons. This would make it the second-largest hard rock lithium extraction project in the European Union and the third in Europe.
The role of technology and environmental concerns
Technological advancements have made it possible to drill deep and extract lithium from geothermal sources, but questions remain about the economic and ecological viability of these methods. Schmidt notes that while some progress has been made, challenges persist in making these projects both profitable and environmentally sustainable.
Vulkan Energy recently began producing lithium chloride, a step closer to the production of lithium hydroxide used in batteries. This milestone marks the first time lithium has been sourced from Germany, a significant achievement in reducing reliance on imported raw materials.
Despite these advancements, the global lithium market faces significant challenges. Lithium prices have fallen in recent years, making it difficult for companies to secure investment for new projects. Schmidt points out that financing remains a global challenge for mining projects, regardless of the country.
Europe’s dependence on lithium
Europe is heavily dependent on China for lithium, a key component in the production of batteries for electric vehicles and mobile phones. To reduce this dependency, European countries are working on 20 lithium research projects, with Serbia, France, Finland, Portugal, Spain, Germany, the Czech Republic, and Austria among the most advanced.
The goal for most of these projects is to start production between 2026 and 2032. However, protests against lithium mining are not unique to Serbia. In Portugal, the only European country currently producing lithium, locals have protested against the environmental impact of mining.
The case of Serbia
The Jadar lithium project in Serbia, managed by Rio Tinto, is one of the scenarios being considered by Europe for future lithium supply. However, the project’s future remains uncertain due to ongoing political events and public opposition. The German agency DERA highlights the need to monitor developments in Serbia closely.
Schmidt diplomatically addresses whether he would support a project like Jadar in Germany, emphasizing the importance of reducing Europe’s dependence on imported raw materials. He argues that mining and production within Europe would benefit the entire continent, not just individual countries.
The global lithium landscape
Globally, lithium production is concentrated in a few key regions. Australia leads with the majority of production, followed by Chile and China. In Europe, Portugal is the only country currently producing lithium, primarily for ceramics.
China dominates the global production of lithium batteries, accounting for 76% of the market. As Europe’s demand for lithium is expected to increase significantly by 2030, efforts to develop domestic sources of this critical raw material are crucial for supporting the green transition while minimizing environmental impact.
