There are a lot of challenges faced by developed countries in reducing their dependency on China for lithium, a crucial component in electric vehicle batteries. Leaders have been exploring ways to secure the lithium supply chain independently of China, given the increasing importance of electric vehicles and utility-scale batteries. However, the article emphasizes that it may be too late to completely eliminate China's influence on the lithium market. The global industry is intertwined with China, making it difficult to "China-proof" the supply chain. Despite efforts to diversify sources, China's dominance in lithium production and battery manufacturing poses significant obstacles for other countries aiming to reduce reliance on Chinese lithium. This situation underscores the complexities and limitations in attempting to untangle the global lithium supply chain from China's influence.

Source: Bloomberg