Lithium resource allocation optimization of the lithium trading network based on material flow

Abstract

The global consumption of electronic products and new energy vehicles is continually increasing, driving the rapid development of lithium resources and the associated industrial chain. The unbalanced distribution of global lithium resources requires trade among various countries to meet their resource needs. Transaction relationships among countries result in unequal transportation distances and varied transportation costs. An unreasonable transaction relationship will increase transportation costs and the risk of industrial chain fractures, whereas a reasonable transaction relationship can reduce transportation costs and shorten the supply distance of the industrial chain. Based on the material flow analysis method and complex network theory, this paper analyzed lithium transactions. Then, an optimization model was designed to minimize transportation costs. Finally, the solution of the model was presented by the table on the operating method. The research results show that a mismatch between the transaction volume and the number of transaction relationships in lithium trading increased lithium transaction costs. Through optimization, the total transportation costs became significantly lower. Participating countries autonomously chose nearby partners with rich lithium batteries and related chemicals. Although a few countries paid the price of increasing costs, the optimization process significantly reduced the total costs and achieved the goal of overall optimization. In addition, the lithium trading network identified import and export centers in various regions, such as Argentina, Chile and Bolivia, which form the famous “lithium triangle” in South America. These regions have the potential to develop a complete industrial chain and reduce the risk of industrial chain rupture.