The Lithium supply chain

Lithium supply chains are complex and commonly global in their extent, with steps that include exploration, mining, processing, manufacturing, use and end-of-life. Lithium as a raw material is sourced either as a mineral, predominantly spodumene, or as brine.  Although lithium is available from a variety of different sources, the processing and production of compounds is currently concentrated in China. Due to high projected demand in the battery sector, the supply chain is expanding very rapidly at present. The rapid supply chain developments in Tier 1 original equipment manufacturer  (OEMs) and Tier 2-3 (cathode and battery manufacture), have an impact on Tier 4 (raw materials) of the supply chain, with new exploration and mining projects, but with a different response pace. 

The short- to medium-term outlook for lithium is that of rapdily increasing demand for all markets, but especially for the manufacutre of Li-ion batteries for EVs. The challenges associated with bringing new supply on stream are many and varied, and go beyond the physical imbalance between supply and demand. Environmental, economic, social and political challenges can be significant and may strongly influence future lithium supply across the whole supply chain.