Rio Tinto has put its Jadar lithium project in Serbia on hold as the company redirects focus toward “short-term opportunities” under new CEO Simon Trott, according to an internal memo cited by Bloomberg. The decision reverses earlier progress made after Serbia reinstated approval for lithium mining in 2024.
A Rio Tinto spokesperson confirmed the contents of the internal communication but declined to elaborate. The memo stated: “Given the lack of progress on approvals, we are unable to maintain the same level of investment and resource allocation,” signalling frustration over ongoing bureaucratic delays and persistent local resistance. The Jadar project remains in the approval phase and has faced strong opposition for years from residents concerned about environmental risks.
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Serbia’s government had revived the project in mid-2024 after previously revoking its planning permit ahead of national elections. President Aleksandar Vučić supported the development, which had been expected to produce up to 58,000 tonnes of battery-grade lithium carbonate annually, tapping what is believed to be Europe’s largest lithium deposit.
The pause follows Trott’s wider restructuring drive since taking over as CEO in August. He has moved to streamline Rio Tinto’s operations, reorganising the company into three divisions — iron ore, aluminium and lithium, and copper — while implementing cost reductions. According to Bloomberg, Trott aims to “simplify a sprawling company and focus spending on growth.” Another internal memo revealed that Rio’s head of lithium, Paul Graves, will depart the company.
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Rio Tinto has recently accelerated capital spending, with investments expected to reach their highest level in more than a decade. In 2024, the company acquired lithium producer Arcadium for US$6.7 billion and outlined plans to spend an additional US$2.5 billion on the Rincon lithium project in Argentina. Lithium was intended to become the company’s fourth major business pillar alongside iron ore, aluminium, and copper.
However, developments in Serbia failed to meet expectations. The Jadar project has faced ongoing protests from environmental groups and local communities, despite Rio Tinto pledging measures such as electric mining equipment, improved waste management and water treatment. The initial cancellation of the regional planning scheme in 2022 had already dealt a major setback, later deemed unlawful by Serbia’s Constitutional Court in 2024.
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With the project now shelved indefinitely, it is unclear whether Rio Tinto will return to Jadar in the future. The pause also casts doubt on Serbia’s ambitions for a raw materials agreement with the European Union, which depended partly on the project’s progress.