Features of critical resource trade networks of lithium-ion batteries

Abstract

Critical resources are key for low carbon development. International trade in critical resources is commonplace. It is important to clarify country roles within this trade network so that resource supply risk can be mitigated and low carbon industries can be supported. This study investigates global trade of typical ores and chemical compounds for lithium-ion batteries—lithium carbonate, cobalt oxide, nickel sulfate, manganese sulfate, nickel ore and manganese ore. The period 2010–2018 is selected to explore different country roles using network analysis. A competition trade model is developed to identify relationships between countries. A critical resource influence model is developed using bootstrap percolation theory to simulate impacts arising from dominant countries—those countries with rich resource endowments or mature markets. Results show that dominant countries tend to maintain close trade relationships. Trade scale is a key factor influencing each country's trade competitiveness and influence. Several policy recommendations are proposed to promote sustainable resource trade and use. • The roles and statuses of countries in the critical resources network are identified. • Trade scale is a key factor to influence a country's trade competitiveness. • Compared to import network, resources' export network is more prone to be influenced by trade crisis. • Improvement of one country's contingency capability in trade networks is vital for addressing one trade crisis.