On July 19, 2024, the EU and the Republic of Serbia signed a Memorandum of Understanding (MoU) to initiate a Strategic Partnership focused on sustainable raw materials, battery value chains, and electric vehicles.

The Partnership aims to foster the growth of new local industries and create high-quality jobs throughout the electric vehicle value chain. It is committed to upholding stringent environmental and social standards while addressing local community concerns with complete transparency.

The Partnership establishes a framework for robust public-private collaboration involving EU institutions and bodies, industry players, business associations, social partners, civil society representatives, relevant ministries from interested Member States and Serbia, public organizations, financial institutions, and investors.

Maroš Šefcovic, Executive Vice-President for the European Green Deal, Interinstitutional Relations, and Foresight of the European Commission, signed the MoU with Dubravka Ðedovic Handanovic, the Minister of Mining and Energy of the Republic of Serbia. The signing ceremony occurred during the High-Level Summit on critical raw materials in Belgrade.

The Partnership builds upon the Stabilisation and Association Agreement (SAA), which came into effect on September 1, 2013, aligning with the EU's New Growth Plan for the Western Balkans. It serves as a crucial step in advancing Serbia's integration into the EU's single market and further enhancing its economic, social, and environmental alignment with the EU.

This MoU, aligned with the SAA, establishes close cooperation between Serbia and the EU in five key areas:

1. Enhancement of Value Chains: The MoU aims to develop value chains for raw materials, batteries, and EVs by fostering collaboration between EU and Serbian industrial actors and stakeholders. It will promote a mutually beneficial pipeline of projects, with a special focus on the EV industrial ecosystem.

2. Research and Innovation (R&I) Cooperation: The agreement seeks to map existing cooperation areas under the EU Horizon Europe R&I framework program and other schemes. Both parties will share knowledge and technologies related to the sustainable exploration, extraction, processing, and recycling of secondary raw materials.

3. High Environmental, Social, and Governance Standards: The MoU will facilitate the application of high standards and practices through mutual consultation and information exchange on relevant policies and initiatives along the entire value chain. This includes increased due diligence and traceability for the battery value chain.

4. Financial and Investment Support: The agreement aims to mobilize financial and investment instruments to support projects under the Partnership. This includes Invest EU, the Western Balkans Investment Framework, a Single Project Pipeline in Serbia, and initiatives under the European Raw Materials Alliance and European Battery Alliance.

5. Skill Development: The MoU focuses on developing necessary skills for high-quality jobs in the raw materials and battery sectors. It encourages the participation of Serbian organizations in European Battery and upcoming Raw Materials Academies, with potential contributions from Serbia through dedicated programs and internships.