Rio Tinto is revising the estimated capital cost of its contentious Jadar lithium project in Serbia after it was designated one of the European Commission’s 13 strategic critical materials projects under the Critical Raw Materials Act (CRMA). Chad Blewitt, managing director of the Jadar mine, confirmed the update in an interview with Reuters on Wednesday.
The project, initially valued at over €2.55 billion ($2.91 billion), is being recalculated to reflect EU environmental and human rights standards tied to its strategic status. “That will be reflected in the final capital cost,” Blewitt said, noting that no revised figure or timeline would be shared until the company secures a field exploitation licence.
The Jadar project was halted in 2022 after mass protests over environmental concerns led the Serbian government to revoke Rio Tinto’s exploration permits. However, the Constitutional Court reinstated the licences in 2023, allowing the Anglo-Australian miner to resume planning.
If realized, the mine could meet 90% of Europe’s current lithium demand, playing a central role in the continent’s green energy and digital transformation strategies. Despite this, local opposition remains strong, with activists threatening fresh protests and transport blockades if construction proceeds.
“Whatever happens next will involve multiple stages of scrutiny and public consultation,” Blewitt emphasized, adding that the project could position Serbia as a pivotal supplier in Europe’s lithium supply chain.
Rio Tinto is one of the few global mining giants heavily investing in lithium amid a market downturn. Its $6.7 billion acquisition of U.S.-based Arcadium Lithium and investments exceeding $1 billion in Chile signal a long-term bet on EV battery metals. While current lithium prices are depressed due to supply gluts, demand forecasts remain optimistic heading into the next decade.
