Lithium Supply Chain Compliance

Lithium is a critical mineral essential for lithium-ion batteries used in electric vehicles and energy storage systems. Global lithium production is concentrated in Australia, Chile, Argentina, and China. Lithium is designated as a critical mineral by the EU, US, UK, Canada, Australia, and Japan.

EU CRMA Requirements

Under the EU Critical Raw Materials Act (CRMA), lithium is designated as a Strategic Raw Material (SRM). The CRMA sets 2030 benchmarks requiring at least 10% of annual EU lithium consumption to be extracted within the EU, 40% to be processed within the EU, and 25% to come from recycling. The EU is developing domestic lithium extraction projects in Portugal, Czech Republic, and other member states.

IRA Critical Minerals Requirements

Under the US Inflation Reduction Act (IRA), lithium is a critical mineral for EV tax credit eligibility. A specified percentage of the value of lithium in EV batteries must be extracted or processed in the US or a free trade agreement partner country. The IRA's Foreign Entity of Concern (FEOC) restrictions limit the use of Chinese-processed lithium in EV batteries eligible for the tax credit.