Sustainable Development of Lithium-Based New Energy in China from an Industry Chain Perspective: Risk Analysis and Policy Implications

Abstract

Lithium-based new energy is identified as a strategic emerging industry in many countries like China. The development of lithium-based new energy industries will play a crucial role in global clean energy transitions towards carbon neutrality. This paper establishes a multi-dimensional, multi-perspective, and achievable analysis framework to conduct a system analysis for determining the potential risks involved in the sustainable development of lithium-based new energy industries in China and other countries towards a carbon-neutral future. The results show that critical risk points including resource supply risks, overcapacity risks, environmental impact risks, and regulation absence risks have emerged with the large-scale development of the lithium-based new energy industry in China. These will not be helpful for the sustainable development of the lithium-based new energy industry, which will play a vital role in attaining the goal of carbon neutrality. Based on our risk identification, a policy implication analysis was performed to investigate potential policy countermeasures including promoting the exploration and development of domestic lithium resources, improving the coordination degree of the lithium-based new energy industry, adopting green and low-carbon development paths, and improving the quality of industry regulation. Based on our findings, recommendations are proposed to optimize policy formulation and implementation for stimulating the sustainable development of the lithium-based new energy industry towards a carbon-neutral future.