This is pandering, not diplomacy

The US and Europe have now teamed up to applaud the mining of lithium–needed mainly for electric vehicle batteries–in Serbia. The enthusiasm is over the top. German Chancellor Scholz was in Belgrade for the July signing of a Serbia/EU “strategic partnership” on sustainable raw materials, battery value chains, and electric vehicles. The US has likewise signed an agreement on US-Serbia strategic cooperation in the field of energy in Serbia. 

Brussels and Washington intend these agreements to encourage commercial exploitation of Serbia’s lithium deposits, under a contract with the British-Australian firm, Rio Tinto. Institutional investors (that is mutual funds, banks, pension and hedge funds) control 58% of Rio Tinto. The single biggest shareholder (11% Google AI tells me) is the Aluminum Corporation of China.

Not quite right

That is the first hint that something is not right. Washington and Brussels do not usually support British or Australian firms, or firms whose single largest shareholder is Chinese. But both the EU and US appear to have decided that Serbia’s lithium deposits are a top priority for electric car batteries.

But are they? Here is one picture of known lithium resources around the world:

Serbia’s lithium deposits amount to 1.3% of the global total. The resources are distributed widely around the world, most in the Western Hemisphere. Lithium is a commodity traded in a worldwide market, like oil. Serbia’s production has no great significance in this global picture.

Nor is the future market for lithium a sure thing. Other technologies are in the research and development pipeline. Five or ten years from now lithium is unlikely to be the only economically viable technology.

Why then?

Why then are European and American officials tripping over themselves to encourage the development of the Serbian lithium deposits? Deputy Assistant Secretary of State Kasanof has even suggested the lithium project could block the rise of ethnic nationalism in the Balkans. Meanwhile,

Here is a hint of what is really going on: US Ambassador Chris Hill told a debate in Belgrade on political options for the Western Balkans that many of the people protesting against plans to mine lithium in western Serbia support Russia.

Those protests are the most serious opposition movement still extant in Serbia today. Red-baiting (if we can still label Moscow as “red”) the demonstrators aims to undermine their impact. That is not the usual US position on environmental concerns. But the Rio Tinto project is a top priority for President Vucic. We can only imagine why. He has no doubt told the local diplomats that he will greatly appreciate their help in squelching the protests.

Let me be clear: I have no objection in principle to economic cooperation with Serbia, or to environmentally and financially sound production of lithium in Serbia or elsewhere. But I do object to European and American officials trying to squelch environmental and financial concerns to please an increasingly autocratic president.

Appeasement is the policy

The diplomatic pandering is part of a broader effort to appease Serbia, provide it with economic goodies, and convince it to turn westward. Let’s skip whether redbaiting legitimate environmental criticism reflects Western ideals. The bigger issue is whether this approach has any chance of working.

It is notable that in neither the European nor in the American agreements cited above does Serbia undertake to conduct its mining in an environmentally sound or financially transparent way. The State Department made it clear the US wants financial probity. The European agreement does likewise. But Belgrade didn’t commit to it in either agreement.

Serbia has aligned itself militarily and politically with Russia and China since Vucic became President, the recent purchase of French Rafale warplanes notwithstanding. Belgrade has also undertaken repeated efforts to destabilize northern Kosovo and to undermine the independence of Montenegro as well as the territorial integrity of Bosnia. The idea that Belgrade can be convinced to embrace the West is dumb. Vucic will take EU money and American political pressure on his environmental opponents, but neither will make him give up his affection for like-minded autocrats with irredentist ambitions.