Anglo-Australian mining giant Rio Tinto has postponed development of its multi-billion dollar Jadar lithium project in western Serbia, after years of delays and public opposition, Bloomberg reported on November 13, citing an internal company memo.

The decision is a blow to Europe’s push to secure local supplies of lithium, a key metal for electric vehicle batteries, and to Serbia’s ambitions to become part of the continent’s green transition.

The memo, seen by Bloomberg and the Wall Street Journal, said the project would be placed under “care and maintenance” due to the lack of progress on permits. “Given the lack of progress with permits, we are not in a position to maintain the same level of cost and resource allocations,” the note reportedly said. The company will maintain its presence in Serbia despite the suspension.

The decision comes as new CEO Simon Trott moves to streamline operations and cut costs across the world’s second-largest mining company. Trott, formerly head of Rio’s iron ore division, took over from Jakob Stausholm in August and has already merged the lithium unit with the aluminum division and initiated a review of smaller operations in the United States and Canada.

The Jadar project, discovered by Rio Tinto geologists in 2004, is one of Europe’s largest untapped lithium deposits and was expected to supply key raw materials for the continent’s electric vehicle transition. The European Commission in June classified it as a strategic project under the Critical Raw Materials Act, aimed at reducing the EU’s reliance on Chinese supply chains.

Despite EU backing, the mine has faced persistent domestic resistance. Environmental groups and local residents have staged mass protests since 2021, accusing Rio Tinto and the Serbian government of underestimating ecological risks such as groundwater contamination and habitat loss.

The Serbian government suspended the project in early 2022 amid the protests but revived it in 2024 as lithium prices surged and Brussels pushed to secure new sources of critical minerals. The move reignited protests in summer 2024 against President Aleksandar Vucic’s administration.

The Jadar valley, located near Loznica in western Serbia, contains rich deposits of lithium and borates. Rio Tinto has invested heavily in exploration and planning, calling the site one of the most significant lithium deposits in Europe.

The latest suspension marks a significant setback for both the company and the EU’s efforts to build a secure lithium supply chain within Europe. However, Rio Tinto said it still views Jadar as a “significant lithium deposit” that could eventually play an important role in Serbia’s and Europe’s energy transition once permitting and political conditions improve.