As policy is changing all of the time, it’s good for companies to not be reliant on one supplier for all of their lithium battery supply needs. Trade wars also open the door for emerging territories to enter competition, such as India and Southeast Asia. Policies can also specifically target tech, a highly priced and heavily used consumer good.
The most important materials used for lithium batteries—such as lithium, nickel, and cobalt—are often mined and exported from other countries. In order to encourage the use of domestic materials and keep money within borders, nations impose tariffs on imported goods.
To give domestic companies a competitive edge, nations often impose export restrictions on raw materials such as lithium, cobalt, and nickel. This is particularly true with a few of the world’s biggest lithium-producing nations, such as China, certain countries in Africa, and Chile.
Lithium batteries have become an increasingly important global product, and global policy has reflected as such, as nations will always leverage each other however they can. Tomorrow’s policy is never certain, so make the purchases you want today in case policy changes for the worse.
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