Journal of Climate Change, Disaster Risk and Resilience Studies
Geopolitical Sustainability of Lithium Supply Chain from European Perspective
Abstract
Petri Pulli
Lithium supply security has become crucial for electric grid transition towards renewable energy sources and for automotive, electronics and military technology companies in Europe. In this paper we first discuss globally the swing producers who possess the capability to grow lithium production based on existing, already identified lithium resources. In the second part we discuss the possibility for developed nations to increase their self-sufficiency for engaging in the lithium supply chains through ensuring minimum-level long-term access to their own latent potential lithium resources. Europeans can discover their own potential lithium resources through systematic mineral systems modelling based prospectivity analysis. We present a case study conducted in Northern Finland for identifying and mapping potential lithium-bearing pegmatites in prospectivity chart for lithium resources. It would be advisable for Europeans to build up scalable supply chain front-end for lithium, i.e. mining reserves, mining infrastructure, ore transport logistics, and refining capacity by research, development and taking into use smart mining technology. Scalable means that under business-as-usual conditions lithium supply chain front-end is hibernating with small costs, but under black-swan type abnormal conditions, the front-end could be activated rather quickly. As Europe aims to strengthen its military capabilities on the long run, military re-armament projects can provide a vehicle to provide a floor for demand upon which to build sustainable and reliable supply chain for lithium. Finally, increasing European cooperation with developing countries in geological exploration, transport infrastructure, mining and refining is recommended. Such cooperation has long-term potential to build resilient supply chains in developing countries for sourcing critical minerals and overcoming local lack of environmental protection, funding, infrastructure and knowhow. Combined, these measures provide long-term opportunities to reduce vulnerability to geopolitical supply chain risks in Europe.