Rio Tinto and the Jadar Project
This case study examines the challenges Rio Tinto encountered while attempting to develop the Jadar lithium-borate project in Serbia, which is a crucial initiative for the global green energy transition. Discovered in 2004, the Jadar deposit is one of the largest lithium reserves in Europe and has the potential to supply critical raw materials for electric vehicles and renewable energy storage. However, the project has been mired in controversy due to environmental concerns, local opposition, and political dynamics in Serbia.
In January 2022, the Serbian government revoked Rio Tinto’s licenses following mass protests, citing insufficient community engagement and environmental risks. As of 2024, the project remains stalled, though President Aleksandar Vu?i? has signaled a willingness to reopen dialogue under stricter environmental standards. Meanwhile, global lithium prices had fallen sharply, and geopolitical tensions—including the EU’s push for critical raw material independence—added complexity to the decision-making process.
This case study challenges students to analyze Rio Tinto’s strategic options. Should the company pursue international arbitration, negotiate for license reinstatement, or abandon the project altogether? The case also invites reflection on broader themes, including stakeholder trust, Environmental, Social, and Governance (ESG) implementation, and the trade-offs inherent in the green energy transition.
In January 2022, the Serbian government revoked Rio Tinto’s licenses following mass protests, citing insufficient community engagement and environmental risks. As of 2024, the project remains stalled, though President Aleksandar Vu?i? has signaled a willingness to reopen dialogue under stricter environmental standards. Meanwhile, global lithium prices had fallen sharply, and geopolitical tensions—including the EU’s push for critical raw material independence—added complexity to the decision-making process.
This case study challenges students to analyze Rio Tinto’s strategic options. Should the company pursue international arbitration, negotiate for license reinstatement, or abandon the project altogether? The case also invites reflection on broader themes, including stakeholder trust, Environmental, Social, and Governance (ESG) implementation, and the trade-offs inherent in the green energy transition.
Collection: IESE (España)
Ref: SM-1778-E
Format: PDF
Number of pages: 29
Publication Date: Sep 8, 2025
Language: English
Description
This case study examines the challenges Rio Tinto encountered while attempting to develop the Jadar lithium-borate project in Serbia, which is a crucial initiative for the global green energy transition. Discovered in 2004, the Jadar deposit is one of the largest lithium reserves in Europe and has the potential to supply critical raw materials for electric vehicles and renewable energy storage. However, the project has been mired in controversy due to environmental concerns, local opposition, and political dynamics in Serbia.
In January 2022, the Serbian government revoked Rio Tinto’s licenses following mass protests, citing insufficient community engagement and environmental risks. As of 2024, the project remains stalled, though President Aleksandar Vu?i? has signaled a willingness to reopen dialogue under stricter environmental standards. Meanwhile, global lithium prices had fallen sharply, and geopolitical tensions—including the EU’s push for critical raw material independence—added complexity to the decision-making process.
This case study challenges students to analyze Rio Tinto’s strategic options. Should the company pursue international arbitration, negotiate for license reinstatement, or abandon the project altogether? The case also invites reflection on broader themes, including stakeholder trust, Environmental, Social, and Governance (ESG) implementation, and the trade-offs inherent in the green energy transition.
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In January 2022, the Serbian government revoked Rio Tinto’s licenses following mass protests, citing insufficient community engagement and environmental risks. As of 2024, the project remains stalled, though President Aleksandar Vu?i? has signaled a willingness to reopen dialogue under stricter environmental standards. Meanwhile, global lithium prices had fallen sharply, and geopolitical tensions—including the EU’s push for critical raw material independence—added complexity to the decision-making process.
This case study challenges students to analyze Rio Tinto’s strategic options. Should the company pursue international arbitration, negotiate for license reinstatement, or abandon the project altogether? The case also invites reflection on broader themes, including stakeholder trust, Environmental, Social, and Governance (ESG) implementation, and the trade-offs inherent in the green energy transition.
Geographic Setting: Serbia
Industry Setting: Industry and mining
Learning Objective
This case is ideal for MBA or executive education courses on sustainability, strategy, international business, and political risk. It helps students:
- analyze the complex stakeholder landscape in extractive industries.
- evaluate strategic options under reputational and regulatory pressure.
- Discuss the challenges of the green transition, including the trade-off between emissions and minerals.
- Reflect on Environmental, Social, and Governance (ESG) implementation and stakeholder trust.
- Understand the role of global geopolitics and domestic political institutions in project viability.
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