Boliden’s Q2 earnings disappoint despite near fivefold rise
The miner said higher metal prices boosted its earnings, while lower treatment charges and metal premiums weighed on the result.
Serbia, the European Union and Germany inked on Friday a series of deals granting EU members and some of the continent’s most important carmakers exclusive access to Serbian lithium.
The agreements, covering sustainable raw materials and battery supply chains, come only a week after Serbia’s top court ruled that Belgrade’s decision to revoke Rio Tinto’s (ASX, NYSE, LON: RIO) licence for the $2.4 billion Jadar lithium project in 2022 was unconstitutional.
The project cancellation followed massive, widespread protests in 2021 that blocked Belgrade and other parts of Serbia to oppose Rio Tinto’s plans due to potential environmental risks.
Serbia’s top court earlier this month overturned a previous ruling to revoke Rio Tinto’s licence for the $2.4 billion Jadar lithium project.
German Chancellor Olaf Scholz said the tentative deals would help Europe to reduce its reliance on imports from China.
This dependency was a major issued addressed by the bloc last year, when drafting laws to strengthen the supply of critical raw materials.
Scholz noted that resuming construction a Jadar, which he called “an important European project”, was key for Europe “to remain sovereign in a changing world and not be dependent on others, which is why new sources of raw materials should be discovered.”
“I’m glad the decision was made,” Scholz said. “I admit, this decision required courage, but it was made at the right moment,” he added.
Representatives from Mercedes Benz and Stellantis, two automakers that have established joint ventures for EV battery production, also inked a letter of intent in Belgrade to invest in a project aimed at boosting EV battery manufacturing.
Germany, Europe’s top carmaker, has been looking to secure lithium supply for its electric vehicle (EV) sector for years. The commodity would also help Europe’s biggest economy’s plans to move away from fossil fuels.
The EU and Serbia have committed to develop a roadmap within six months with concrete actions to put the strategic partnership inked today into practice.
Jadar, discovered by Rio Tinto geologists in 2004, would be Europe’s biggest lithium mine, with production of 58,000 tonnes of refined battery-grade lithium carbonate per year. This is enough to power one million electric vehicles and supply 90% of the continent’s current lithium needs.
The mine, expected to supply mainly the European market, would also propel Rio Tinto onto the world’s top 10 lithium producers podium.
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