THE FOREIGN SERVICE JOURNAL | JUNE 2025 37 tive lithium processing hubs within Quad nations as global demand for lithium is set to surge: It is projected to rise by 90 percent over the next two decades, according to the International Energy Agency. Lithium, vital for EV batteries, grid storage, and defense applications, is currently dominated by China, which controls 60 percent of the world’s lithium refining and processing. Despite being the world’s largest lithium producer, Australia exports 99 percent of its lithium concentrate to China because it lacks a domestic processing infrastructure. To break this dependency, Quad nations should invest in lithium refining and lithium-ion battery processing capacity within the Quad. Japan, with its advanced lithium refining expertise, is already making strides. Toyotsu Lithium Corporation recently launched Japan’s first lithium hydroxide plant, while Sumitomo Corporation is partnering with Liontown Resources to create an integrated supply chain from Australian lithium mines to battery production. India, too, is stepping up, with government-backed incentives fueling private sector investment in lithium refining to support EV battery manufacturing. Meanwhile, the U.S. is ramping up domestic processing, with companies like Tesla, Stardust Power, and Piedmont Lithium set to scale up lithium processing and battery production this year. Collectively Invest in Africa to Create an Ethical Cobalt Supply Chain. The U.S. should coordinate with Quad leaders to accelerate private and public sector investments in Africa’s cobalt sector to counter China’s dominance in cobalt refining and ensure an ethical supply chain. To reduce reliance on Chinese processing, the Quad should invest in alternative refining hubs— either within Africa or in their own territories—while ensuring these supply chains prioritize fair labor practices, environmental responsibility, and transparent governance. Although both Australia and Japan have cobalt refining capabilities, the scale is inadequate to challenge China’s grip on the cobalt supply chain. The Democratic Republic of the Congo (DRC) accounts for three-fourths of global cobalt mine production, but more than 80 percent of its cobalt mines are controlled by Chinese firms. Worse, DRC’s cobalt industry is plagued by forced labor, hazardous conditions, and severe environmental degradation, mainly as a result of Chinese practices. The cobalt supply chain has been
RkJQdWJsaXNoZXIy ODIyMDU=