Rio Tinto reported ready to invest in battery plant in Serbia

Slovakian battery maker InoBat signed declarations of intent with the Serbian government to build an electric vehicle battery plant which the Rio Tinto mining company would invest in, Reuters reported on Monday.

Rio Tinto’s plans to set up a lithium mine in western Serbia drew weeks of protests with environmental activists warning that the mining project would cause wide-spread pollution in a mainly farming area. Rio Tinto’s plans were stopped when the government revoked the spatial plan for the area where the mine was planned to be opened. Activists have claimed that the government intends to allow the project to go ahead.

Reuters said that the factory would have a capacity of up to 32 gigawatt hours (Gwh) and that it would open with an initial capacity of 4 GWh in 2025. InoBat is reported to have said the Serbian government has agreed to provide funding of up to 419 million euros ($431 million) including grants and tax incentives to support the project.

Reuters quoted an unnamed source familiar with the matter who said the deal is close to being completed.