China Commits to Fast-Track Critical Minerals for Stellantis’ EV Production in Serbia

Serbia has secured a promise from to expedite exports of critical minerals essential for electric vehicle (EV) production, directly benefiting ‘ 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 彭博社.

Stellantis Faces Mineral Shortages

Stellantis, which manufactures the Fiat Grande Panda 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. Vucic noted that Stellantis sought government intervention, prompting Serbia to leverage its diplomatic ties with China. The Kragujevac facility, established in 2012, produces EVs like the Grande Panda, which Stellantis recently began exporting, underscoring its role in Serbia’s industrial growth.

China Commits To Fast-Track Critical Minerals For Stellantis’ Ev Production In Serbia

China’s Swift Response

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.

This commitment aims to bypass delays caused by China’s export restrictions, which Xi clarified are not “directed at friendly nations such as Serbia.” While Vucic did not specify the minerals or their destination—whether exclusively for Serbia or other Stellantis operations—the move signals prioritized access for Serbia.

Impact on EV Production

The expedited mineral supply could stabilize Stellantis’ production of EVs in Serbia, ensuring consistent output of models like the Grande Panda, which has a range of approximately 199 miles (320 kilometers) per charge. Reliable access to materials may lower production costs, potentially reducing EV prices for consumers. For Serbia, the deal reinforces the economic importance of the Kragujevac plant, which employs thousands and drives exports. Globally, this arrangement highlights how diplomatic ties can mitigate supply chain disruptions in the EV industry.

Navigating Global Supply Challenges

China’s tightened controls on rare earths, intensified by geopolitical tensions and tariff disputes, have strained global EV supply chains. These materials are critical not only for batteries but also for motors and electronics, with demand projected to grow as EV adoption accelerates. 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. For EV enthusiasts and manufacturers, this deal emphasizes the need for diversified supply chains to reduce reliance on single-source markets.

展望未来

While Stellantis has not yet commented, the agreement could enhance its competitive edge in the European EV market, where demand for affordable models like the Citroen C3 is rising. For Serbia, the deal strengthens its position as an EV manufacturing hub, potentially attracting further investment. However, the lack of clarity on whether minerals will serve Stellantis’ global operations raises questions about the deal’s broader impact. As EV production scales, such diplomatic interventions may become critical to ensuring supply chain resilience.


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Haye Kesteloo
Haye Kesteloo

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