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<p>Global supply chains are increasingly vulnerable to disruptions, especially from extreme weather events driven by climate change, creating risks for firms reliant on specific regions for critical inputs. The increasing connectivity among firms amplifies systemic vulnerabilities, as disruptions in one supply chain segment can propagate across industries, impacting economic stability. This study examines how climate-induced flooding may disrupt supply networks, with a particular focus on lithium hydroxide (LiOH) production in China. Using outputs from a global flood model under SSP126 and SSP585 climate scenarios, we identify significant flood exposure in key LiOH production regions, especially in Jiangxi and Sichuan provinces. Findings show that flood risks are highly concentrated in a few sites, especially Ganfeng Lithium, with potential economic losses up to 1.2 billion yuan. Flood depth distributions are also found to be highly uneven across sites, highlighting the importance of site-level analysis rather than reliance on aggregate indicators. The study emphasizes the need for geographic diversification and flexible supply chain models to enhance resilience in turbulent times, offering insights applicable across industries facing similar climate-related risks.</p>

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Flood risks to the supply chain of electric vehicle batteries under climate change: a case study of lithium hydroxide production

  • 期刊论文

  • 发表日期：

    2026年6月26日

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  • Yin Yang,
  • Qingnan Xie,
  • Xi Hu,
  • Raghav Pant,
  • Jiashun Huang

摘要

Global supply chains are increasingly vulnerable to disruptions, especially from extreme weather events driven by climate change, creating risks for firms reliant on specific regions for critical inputs. The increasing connectivity among firms amplifies systemic vulnerabilities, as disruptions in one supply chain segment can propagate across industries, impacting economic stability. This study examines how climate-induced flooding may disrupt supply networks, with a particular focus on lithium hydroxide (LiOH) production in China. Using outputs from a global flood model under SSP126 and SSP585 climate scenarios, we identify significant flood exposure in key LiOH production regions, especially in Jiangxi and Sichuan provinces. Findings show that flood risks are highly concentrated in a few sites, especially Ganfeng Lithium, with potential economic losses up to 1.2 billion yuan. Flood depth distributions are also found to be highly uneven across sites, highlighting the importance of site-level analysis rather than reliance on aggregate indicators. The study emphasizes the need for geographic diversification and flexible supply chain models to enhance resilience in turbulent times, offering insights applicable across industries facing similar climate-related risks.