Rio Tinto to Shelve $2.4 Billion Serbian Lithium Project

By Rhiannon Hoyle

Rio Tinto will mothball a $2.4 billion lithium project it has spent years seeking to develop in Serbia, as the mining giant's new chief executive aims to simplify the business and focus on quicker growth options.

Rio Tinto, the world's second biggest miner by market value, has long touted the Jadar project in western Serbia, discovered by its own geologists in 2004, as an important future source of the battery metal for the European market. It was this year designated a strategic project by the European Union.

But the mining giant has faced repeated setbacks advancing the project amid community opposition and suspected Russian disinformation.

The decision to shelve Jadar follows the elevation of Rio Tinto's former iron-ore boss Simon Trott to the role of CEO, succeeding Jakob Stausholm. Trott took charge in August pledging to reduce costs and minimize distractions.

"As part of our focus across the overall portfolio to simplify and prioritize near term opportunities, the decision has been made to transition the Jadar project to care and maintenance," said an internal memo sent to some staff this week and reviewed by The Wall Street Journal.

Rio Tinto still considers Jadar to be an important deposit of lithium that could play a significant role in Serbia and Europe's energy transition, the memo said. "However, given the lack of progress in permitting, we are not in a position to sustain the same level of spend and resource allocation."

Soon after taking the helm, Trott said the miner will reconsider whether it keeps some of its smallest businesses, namely its borates operations in California, and an iron and titanium business in northern Quebec.

Investors have been seeking clues on Trott's plans for the miner's lithium assets which, in one of his first moves as CEO, Trott bundled with Rio Tinto's big aluminum division.

Earlier this year, Rio Tinto acquired Arcadium Lithium for $6.7 billion, catapulting it into the ranks of the world's top lithium producers overnight. The foray into lithium has set Rio Tinto apart from other major diversified miners, which mostly passed on opportunities to invest in the battery metal to focus on expansion in copper.

Trott is scheduled to make his first major strategy presentation to investors as chief executive on Dec. 4.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

November 13, 2025 01:54 ET (06:54 GMT)