Wedoany.com Report-Nov. 14, Rio Tinto Group has put the $2.95-billion Jadar lithium project in Serbia on hold, according to an internal company note. The project, which had not yet reached production, had been affected by multiple challenges over recent years. Despite the site’s high lithium and boron grades and large resource potential, progress has been limited due to permitting delays and other operational hurdles.

The decision comes under the leadership of recently appointed CEO Simon Trott, who is focused on simplifying Rio Tinto’s portfolio and reducing overall expenditures. The internal note stated: “Given the lack of progress in permitting, we are not in a position to sustain the same level of spend and resource allocation.”

Jadar had attracted attention for its scale and potential contribution to the battery metals sector, critical for electric vehicles and renewable energy storage. The site is considered to contain one of Europe’s largest lithium deposits, alongside significant boron resources. However, the project faced opposition from local communities, leading to public protests and political debate within Serbia.

Rio Tinto had planned Jadar as a key step in expanding its lithium supply chain amid rising global demand for battery metals. The project was designed to produce high-purity lithium for electric vehicle batteries, aiming to support the European energy transition. The delay or suspension marks a significant setback for these plans and highlights the challenges of developing large-scale mining projects in regions with complex permitting processes and local concerns.

Industry analysts note that while the resource potential remains substantial, uncertainties around permitting, community engagement, and regulatory approvals have contributed to the decision. The mothballing of Jadar allows Rio Tinto to reallocate capital and management focus toward projects with clearer timelines and reduced operational risk.

The move aligns with broader trends in the mining sector, where companies are increasingly prioritising portfolio efficiency, cost management, and risk mitigation. CEO Simon Trott’s strategy emphasizes streamlining operations, reducing discretionary spending, and focusing on projects with stronger near-term returns.

While Jadar remains on hold, Rio Tinto retains the rights to the project and could revisit it in the future if conditions improve. The company continues to monitor developments in the lithium market, which is expected to see sustained growth driven by the electric vehicle sector and energy storage demand in Europe and globally.

The decision also reflects the balancing act between resource potential, community acceptance, and regulatory frameworks, highlighting the importance of local engagement in major mining projects. Jadar’s suspension underscores how social and regulatory factors can impact project economics, even when geological resources are highly attractive.

This step allows Rio Tinto to manage capital efficiently while maintaining strategic exposure to critical battery metals through its other lithium and boron assets worldwide. The company remains committed to supporting global decarbonisation efforts through its portfolio of metals critical to renewable energy and electric mobility.