Rio Tinto (NYSE:RIO) has decided to halt further development of its $2.4 billion Jadar lithium project in Serbia, marking one of the first major strategic shifts under new Chief Executive Simon Trott, who is pushing to refocus the company on nearer-term growth options.
The Jadar deposit, discovered by Rio Tinto geologists in 2004, has long been viewed as one of Europe’s most promising future sources of lithium. The European Union designated it a strategic project earlier this year, citing its importance for securing supplies of battery metals needed for the region’s electric-vehicle and clean-energy ambitions.
Despite its strategic relevance, Jadar has struggled to progress. The project has been stalled by regulatory hurdles, strong local resistance, and what authorities believe to be Russian-backed disinformation efforts aimed at influencing public opinion.
An internal memo reviewed by The Wall Street Journal confirmed that the company will shift the project into “care and maintenance,” saying the move is part of Rio Tinto’s effort to “simplify and prioritize near term opportunities.”
The memo emphasized that Rio Tinto still considers Jadar a valuable long-term asset with meaningful potential for both Serbia and Europe, but added that the “lack of progress in permitting” means the company is “not in a position to sustain the same level of spend and resource allocation.”
The pause fits with Trott’s early direction since taking the helm in August, as he aims to streamline the miner’s portfolio, reduce costs, and limit distractions while focusing on projects that can deliver results more quickly.