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Game Theoretical Multi Agent Critical Mineral Supply Chain

Energy storage technologies are critical enablers of the clean energy transition, requiring extensive lithium resources for batteries that power electric vehicles and grid storage systems. However, the geographical concentration of lithium processing and the complex trade relationships between major economies such as the United States and China create challenges to develop sustainable and resilient supply chains. This study develops a multi-regional optimization framework to analyze how interactions between the United States and China affect the global lithium supply chain and its environmental impacts. The framework incorporates regional production capacities, trade flows, recycling investments, and CO2 emissions to evaluate different supply chain configurations. Using data from 2020-2100, we model lithium supply chain consisting of different stages with forward and backward flow of mined, refined lithium, EV batteries, recycles lithium between major importer and exporters of lithium and lithium-ion batteries. Results show that China’s dominant processing capacity significantly influences optimal material flows, but strategic US investments in domestic processing and recycling can help balance the supply chain. These findings provide insights for policymakers on balancing environmental goals with supply security through inter-regional coordination in the lithium supply chain.

Tags: Uncategorized

Authors

Erick C. Jones Jr., Sarasadat Alavi

Dr. Erick C. Jones Jr.
Industrial, Manufacturing, & Systems Engineering


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