Petrovic warns of risks in relying on single partner for lithium investments

NEWS 12.10.202415:07 0 komentara
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Columnist for Nova Ekonomija, Bogdan Petrovic, commented today on the visit of Turkish President to Serbia, noting that the most important aspect of the discussions will likely remain hidden—agreements related to the defense industry. "The policy of relying on multiple partners, while with lithium relying exclusively on one, means that we might miss out on other investments," Petrovic stated.

„Turkey has an extremely powerful defense industry, especially dominant in drone production. What will actually happen will probably remain a secret. Memorandums are non-binding, and it’s uncertain what will come of them,“ Petrovic said to Novi Dan.

He recalled that a Memorandum on the construction of a highway to Sarajevo was signed with Turkey back in 2018.

„Six years have passed, and we are building that highway from our own funds,“ Petrovic noted.

„Apart from the potential military cooperation that will happen without public knowledge, I expect nothing from these agreements,“ he emphasized.

Regarding the recent visit of U.S. Undersecretary Jose Fernandez, Petrovic criticized the announcement of a strategic partnership with a relatively unknown American company, Utility Renewables, which lacks substantial references. He also pointed out that Serbian President Aleksandar Vucic announced the signing of a 1.5 billion euro deal next week for the construction of a 1-gigawatt solar power plant and a 200-megawatt battery storage system—a project without a transparent process.

Petrovic further reminded that last year, a special law was passed suspending public procurement in the energy sector, and an agreement for strategic partnership was assigned to the same company. However, the contract has yet to be signed, which, according to him, raises questions about the seriousness of the company.

„The justification for suspending the public procurement law in energy is questionable, and also whether Serbia needs such a project,“ he argued.

„A 1-gigawatt solar power plant and a 200-megawatt battery storage do not solve any of our problems,“ Petrovic said.

Commenting on Fernandez’s claim that the Jadar project could bring a 4% GDP increase to Serbia, Petrovic called this projection „highly debatable.“

„Hungary doesn’t have a lithium mine, but Chinese companies are building two electric car factories and a battery factory there. If we were to get two or three car factories and a battery factory, it’s possible, but we have no guarantees for that. A mine can potentially lead to significant growth, but it’s a big question whether we have guarantees for the entire production chain happening in Serbia,“ he added.

Petrovic warned that relying exclusively on one partner for lithium could mean losing out on other investments.

„The Chinese are absolutely dominant in electric vehicles. Europe has lagged behind in the development of electric cars, and the German automotive industry is suffering significant losses. China is the absolute leader in solar panel production and technology, not the United States,“ he concluded.

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