The 80% drop in the price of lithium worldwide does not mean it will remain at that level, as this metal is a commodity subject to market fluctuations, said Professor Čedomir Beljić from the Faculty of Mining and Geology in Belgrade.
Metal prices fluctuate; they are commodities determined by supply and demand. Large industrial battery manufacturers, such as China, influence prices. This is an integral part of the metal industry’s operation; the price of copper, for example, increased five to ten times in a short period after 2002 – said Beljić when commenting on the decline in lithium prices.
Due to the slowdown in demand for electric vehicles, which rely on lithium batteries, the price of this metal dropped by over 80% in the past year to $13,200 per ton, the lowest level since 2020. In 2019, it was even as low as $6,000 per ton.
As Professor Beljić mentioned, the European Commission has categorized lithium as a critical material due to its evident necessity. Therefore, geological exploration and search activities have intensified, with six significant lithium reserve research projects being initiated in Finland, Germany, the Czech Republic, Austria, France, Portugal, and the United Kingdom.
Beljić, who participated in the elaboration of reports on lithium reserves in Serbia near Loznica, where the exploration rights were acquired by the Australian-American company Rio Tinto, planning to implement the “Jadar” project for the exploitation of lithium from jadarite ore, stated that if lithium is in demand, the logic of mining engineers is to exploit it, and “if it is said to be unnecessary and uneconomical, no one will mention it.”
According to him, the deposit near Loznica is significant because there is a large quantity of ore that can be exploited “efficiently, rationally, and profitably,” and in the long run, it can provide job security for workers, with the possibility of developing processing capacities.
In Serbia, underground exploitation is planned, with no significant impact on the surface terrain. Inert material, such as overburden or rock, would be placed in the excavated spaces, and it might be necessary to open a quarry, but I don’t know the details of the project – said Beljić.
He emphasized that if realized, the “Jadar” project would not significantly damage the surface, and the land surface could still be used for agriculture. The “projected settlement level of the soil, over 60 years, is not more than half a meter.”
The discussions surrounding the project are a result of a lack of understanding of the exploitation process. Mining is an activity that affects the environment, altering it to a greater or lesser extent. However, what is planned for “Jadar” is one of the most favourable methods because the exploitation is underground – said Beljić.
When asked whether it is profitable to exploit lithium if only a mining fee is charged, Beljić clarified that it is not about a mining fee but rather compensation for usage.
Fee implies leasing, and leasing is not applicable in mining; instead, compensation for usage is applied, which ministers also do not distinguish. Compensation has never been a motivation for mining, but rather direct employment of workers, the possibility of processing, and the development of the industry based on products obtained from mining – said Beljić.
He added that “if there is no raw material, there will be no other links in the technological chain.”
Serbia has raw materials but lacks processing capacities, similar to Australia, which exports the entire quantity of lithium, i.e., raw material, without significant domestic processing. Therefore, it cannot be said that Australia is an economically unsuccessful country – stated Beljić.
He emphasized that he doesn’t know whether lithium will be processed in Serbia because he is neither an investor nor a processor.
The existence of raw materials in Serbia is a fact, and what will happen with it should be discussed by relevant politicians, economists, investors, and interested citizens – said Beljić.
On the question of who benefits from exploitation, whether it’s the company or the state, Beljić mentioned that companies are collaborators with the state as they increase employment, influence the economy, and pay taxes.
Mining has been stigmatized, and no one wants to acknowledge what mining means for this country. What does Serbia export? Raspberries for 200 dinars. RTB Bor (Zijin), Smederevo Hesteel (Hesteel), Naftna industrija, and EPS, all depend on mining – said Beljić.
He emphasized that if the state decides not to open a lithium mine, “not a single miner will take a pickaxe and start protesting on Terazije demanding that the mine operates.”
“If they allow us, we will work; if they don’t, we won’t. No mining engineer will claim that mining does not impact the environment. Our task is to provide the best possible project to protect the environment. If the state does not want it, what is the alternative? We will only deal with raspberries, pigs, walnuts… Will a child use or perhaps leave a mobile phone with a lithium battery? Maybe not,” said Beljić.
He added that “there is always the possibility of an incident, but everything will be done to prevent it from happening.”
