China Pledges Rare Mineral Support for Stellantis in Serbia

In a recent development in the global EV supply chain drama, Serbia has announced that it has secured China’s support to expedite critical mineral exports, providing a much-needed lifeline to Stellantis and its electric vehicle (EV) production in the region. According to a Bloomberg report, Serbian President Aleksandar Vučić announced over the weekend that Chinese President Xi Jinping had personally pledged to expedite the export approval process, following a request made on behalf of Stellantis.

The automaker, which operates a key manufacturing plant in Kragujevac, Serbia, reportedly reached out to the Serbian government when it began facing difficulties obtaining critical materials for EV production, primarily due to surging prices and tightened Chinese export controls.

Stellantis currently builds the Fiat Grande Panda and Citroën C3 models at the Serbian facility. Vučić said the Chinese leader promised that any export restrictions wouldn’t apply to “friendly countries such as Serbia,” and that Beijing would work closely with Serbian authorities to ensure faster permitting for the shipments.

China has been tightening its grip on rare earth elements and other essential minerals used in electronics and EV batteries, triggering supply chain anxiety across the auto industry. These minerals are vital to producing electric motors, batteries, and semiconductors—without them, production lines can grind to a halt.

While it’s unclear whether the incoming materials will only support Stellantis’ Serbian operations or be distributed to other plants across Europe, the Serbian president emphasized the crucial role Stellantis plays in his country’s economy. The automaker, which inherited the facility from Fiat after the 2012 investment, remains a major industrial player in the region.

Stellantis has yet to respond to Vučić’s comments publicly, but the move highlights the growing importance of international diplomacy in securing the raw materials necessary for the EV race. For Serbia, it’s a diplomatic win. For Stellantis, it could be the difference between staying on schedule or stalling in a competitive global market.

Source: Bloomberg