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China's lithium supply chain: Security dynamics and policy countermeasures

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  • Zhou, Na
  • Su, Hui
  • Wu, Qiaosheng
  • Hu, Shougeng
  • Xu, Deyi
  • Yang, Danhui
  • Cheng, Jinhua

Abstract

This paper used the system dynamics method to model the lithium supply chain in China, which was simultaneously driven by both demand and price dynamics. We focused on the long-term security dynamics in the context of resource constraints and the growing demand for electric vehicles (EVs) in China. We then simulated the impact of the short-term shock caused by the Coronavirus on the security of the domestic lithium supply chain. Based on scenario analysis, China's lithium supply chain exhibited prominent consumption-driven characteristics. Long-term changes in China's ultimate recoverable lithium reserves would not have a significantly impact on lithium supply chain security. Contrary to this, the development of the EVs industry would result in a significant increase in China's demand for lithium, which might adversely affect the security of the country's supply chain for lithium in the future. The domestic lithium supply chain was able to withstand the short-term impact of the Pandemic, but overcapacity was intensified as a result.

Suggested Citation

  • Zhou, Na & Su, Hui & Wu, Qiaosheng & Hu, Shougeng & Xu, Deyi & Yang, Danhui & Cheng, Jinhua, 2022. "China's lithium supply chain: Security dynamics and policy countermeasures," Resources Policy, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:jrpoli:v:78:y:2022:i:c:s0301420722003129
    DOI: 10.1016/j.resourpol.2022.102866
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    Cited by:

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    2. Khan, Rabnawaz, 2023. "The impact of a new techno-nationalism era on eco-economic decoupling," Resources Policy, Elsevier, vol. 82(C).
    3. Huiwen Gong & Allan Dahl Andersen, 2022. "The role of natural resources in accelerating net-zero transitions: Insights from EV lithium-ion battery Technological Innovation System in China," Working Papers on Innovation Studies 20221001, Centre for Technology, Innovation and Culture, University of Oslo.
    4. Fuentealba, Diego & Flores-Fernández, Cherie & Troncoso, Elizabeth & Estay, Humberto, 2023. "Technological tendencies for lithium production from salt lake brines: Progress and research gaps to move towards more sustainable processes," Resources Policy, Elsevier, vol. 83(C).

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