Thewesternbalkans.
Serbia has secured a promise from China to expedite exports of critical minerals essential for electric vehicle (EV) production, directly benefiting Stellantis’ factory in Kragujevac, according to Serbian President Aleksandar Vucic. This development, announced on June 29, 2025, addresses supply chain challenges for Stellantis, a key player in Serbia’s economy, amid China’s tightened export controls on rare earths, reports Bloomberg.
Stellantis, which manufactures the Fiat Grande Panda and Citroen C3 at its Kragujevac plant, encountered / sourcing critical materials at affordable prices. These minerals, likely including lithium, cobalt, or rare earths, are vital for EV batteries and electronics.
At a press conference Vucic stated that Stellantis’ representatives approached him with a request to send a letter to Chinese president Xi Jinping, with whom he maintains strong relations, as the company was facing difficulties in obtaining critical materials for EV production “at normal prices” amid global trade tensions.
Chinese President Xi Jinping personally assured Serbia of support, stating, “I have asked relevant institutions in China to maintain close communications with the Serbian side and to complete the permission procedures at an accelerated pace” for mineral shipments, Vucic said, citing a letter from Xi.
The Chinese president also wrote that any restrictions that China may have on the export of critical minerals are an international common practice and “are not at all aimed at friendly countries like Serbia,” according to Vucic.
Comment: China’s tightened controls on rare earths, intensified by geopolitical tensions and tariff disputes, have strained global EV supply chains.
The agreement could enhance Stellantis‘ competitive edge in the European EV market, where demand for affordable models like the Citroen C3 is rising.
For Serbia, the deal reinforces the economic importance of the Kragujevac plant, which employs thousands and drives exports. Serbia’s success in securing prioritized exports could set a precedent for other nations seeking stable supplies, though it also underscores China’s influence over critical minerals.
Globally, this arrangement highlights how diplomatic ties can mitigate supply chain disruptions in the EV industry.
