As the EU accelerates its pursuit of critical raw materials to support its green transition and enhance strategic autonomy, lithium – an essential component of electric vehicle batteries – has gained significant importance. This article examines the EU’s strategic interest in securing lithium through the Critical Raw Materials Act (CRMA) and evaluates Serbia’s potential role in meeting these objectives. It presents Serbia’s ‘lithium dilemma’, which involves balancing the presumed substantial economic and strategic benefits of lithium exploitation with rising environmental and social concerns among the local population. The article argues that failing to address this dilemma could undermine the EU’s legitimacy in Serbia, especially in the context of the country’s EU accession process. It identifies three central challenges dominating public discourse in Serbia: environmental risks associated with lithium extraction, widespread public mistrust of Serbian institutions, and the fear that mining could reinforce stabilitocracy rather than foster democratic reforms. Against this backdrop, the article outlines how the EU can navigate these complexities while advancing its strategic objectives as part of its raw materials diplomacy.