Rio Tinto (LSE:RIO) is placing its $2.4 billion Jadar lithium project in Serbia on hold, as newly appointed CEO Simon Trott moves to streamline operations and shift focus toward projects offering quicker returns.
The company has been working on Jadar for nearly two decades, following its 2004 discovery of the large lithium-bearing deposit in western Serbia. Earlier this year, the European Union classified the project as strategic, highlighting its potential to become a key supplier of battery metals for European manufacturers.
However, despite that status, Jadar has struggled to advance. The development has faced persistent local opposition, as well as what officials believe were targeted Russian disinformation efforts aimed at derailing progress.
According to an internal memo reviewed by The Wall Street Journal, Rio Tinto will move the project into “care and maintenance” as part of a broader initiative to “simplify and prioritize near term opportunities.”
The memo reaffirmed the company’s belief that Jadar remains a valuable resource with the potential to support Serbia’s and Europe’s energy transition. But it also stressed that the “lack of progress in permitting” has left Rio Tinto “not in a position to sustain the same level of spend and resource allocation.”
The shift reflects Trott’s early strategy since replacing Jakob Stausholm in August. The new chief executive has pledged to sharpen the miner’s focus, reduce costs, and eliminate distractions as the world’s second-largest miner by market value seeks more reliable growth avenues.
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