Rio Tinto’s Jadar lithium project in Serbia is entering a decisive phase as the company maintains the development in care and maintenance while the timetable for key permits becomes increasingly important. The mining group had invested about €640 million in Serbia by the end of 2025, but Jadar has not reached construction. Rio Tinto says the project is currently being transitioned into care and maintenance while it continues engagement with the Serbian government and other stakeholders.
Financial data from Serbian subsidiary Rio Sava Exploration show a substantial reduction in development spending during 2025. Capital expenditure dropped from RSD 2.25 billion to RSD 6.9 million, equivalent to less than €60,000, while financial support from the parent company declined from RSD 10.5 billion to RSD 4.1 billion.
Jadar Development Moves Into Care and Maintenance
The sharp decline in capital spending indicates that Rio Tinto is no longer funding Jadar at the level associated with active project development. The company has nevertheless retained the project and continues technical and stakeholder work. Rio Tinto’s current project description says Jadar remains a lithium-borates resource with strategic-project status under the EU Critical Raw Materials Act.
Some project permits are expected to expire in the first half of 2027, creating an approaching decision point over whether Rio Tinto seeks extensions, resumes development, considers alternative ownership arrangements or pursues other options. The future regulatory framework will be particularly important following years of political debate and protests surrounding the proposed mine.
Development Spending Falls Sharply
Rio Sava’s financial position reflects the reduction in project activity. Cash holdings fell to approximately RSD 548.5 million, or around €4.7 million, from RSD 2.74 billion at the end of 2024. Payments to foreign suppliers increased to about RSD 3 billion, while employee costs reached RSD 1.52 billion, with the increase largely associated with severance payments as the company reduced its workforce and changed management.
Rio Sava recorded an operating loss of approximately €50 million for 2025. At the same time, the company continued spending on technical and corporate activities. Nearly €19 million was allocated to technical studies, analysis and other project services, while approximately €17.5 million went toward consulting, related-party and other intangible services. The spending pattern indicates that technical and corporate work continued even as physical development of Jadar remained largely suspended.
Hundreds of Millions Already Invested
Rio Tinto has provided its Serbian subsidiary with approximately €200 million in share capital and another €436 million in additional capital reserves. Accumulated losses have reached roughly €604 million, covering expenditure associated with exploration drilling, metallurgical studies, engineering, environmental work, land acquisition, consultants, legal advisers, employees and community programmes.
The overall financial exposure could be higher because some international technical, legal and corporate expenses may have been recorded outside Rio Sava. Only approximately €36 million remains recognised as project-related assets. This includes around €16.2 million in land and properties in the Jadar Valley and approximately €19.4 million in intangible assets, including processing technology for lithium- and boron-bearing material.
Jadar Remains a Strategic European Lithium Project
The proposed Jadar development was designed as an integrated $2.4 billion lithium and borates project, combining an underground mine with associated infrastructure and a beneficiation and chemical processing plant. The project’s strategic significance extends beyond Serbia. Europe is seeking to develop domestic sources of battery raw materials and reduce its dependence on imported lithium supply chains.
Jadar was designated a Strategic Project under the EU Critical Raw Materials Act in 2025, recognising its potential importance to European raw-material supply. A restart could allow Rio Tinto to build on its existing technical studies, processing technology and land holdings. Further delays, however, could increase remobilisation costs and require additional updates to engineering, environmental and permitting documentation.
Additional Funding Keeps Serbian Operations Running
Rio Sava has reduced its longer-term liabilities and classified approximately RSD 1.21 billion of remaining obligations as short term. Rio Tinto has also allocated a further €24 million for Serbian operations in 2026, providing funding for continued activity while the project’s regulatory and political outlook develops. The current financial structure therefore points to asset preservation rather than a full project withdrawal. Rio Tinto continues to fund the Serbian operation, but at a substantially lower level than during active development.
Permitting Becomes the Critical Test
The central issue for Jadar is increasingly shifting from the size of its lithium resource toward whether the project can obtain the regulatory approvals and social conditions required for development. Rio Tinto has continued its application process for the Exploitation Field Licence, which is required before detailed geotechnical field investigations can begin.
The combination of permit timelines, government policy, stakeholder engagement and project economics will determine the next stage for the Serbian lithium development. For Rio Tinto, Jadar remains a major European lithium asset with substantial historical investment behind it. Its future will depend on whether the company can move from care and maintenance back toward a regulatory and development framework capable of supporting construction.
