The Lithium Nexus: China's Strategic Chokehold and the Looming Crisis for U.S. Economic Security
The United States stands at the precipice of a strategic vulnerability that could unravel its economic leadership within a decade. China now controls 65% of global lithium chemical production, 80% of the world’s lithium refining capacity, and holds direct stakes in 15 of the 20 largest lithium mines operational by 2024. This dominance grants Beijing unparalleled leverage over the core mineral powering the 21st-century economy—lithium. Every electric vehicle (EV), grid-scale battery, and advanced defense system depends on this resource, yet the U.S. imports 92% of its lithium-ion batteries and 100% of processed lithium carbonate from foreign suppliers, predominantly Chinese-controlled entities. If unaddressed, this dependency will enable China to manipulate lithium prices, throttle U.S. clean energy transitions, and extort technological concessions from Fortune 500 companies within the next 5–7 years. Three existential risks emerge: the collapse of the $65B U.S. EV manufacturing sector, the forfeiture of renewable energy infrastructure projects to Chinese competitors, and the irreversible decline of American influence in critical mineral markets. This report exposes how systemic underinvestment in lithium supply chain sovereignty has created a national emergency for corporate leaders—one that demands immediate capital deployment into lithium mining ventures outside China’s sphere of influence.
