Recently, a series of key developments in the global lithium sector have emerged in rapid succession, spanning regulatory adjustments in resource-rich countries, breakthroughs in new lithium extraction technologies, innovations in project financing models, and the optimization of supply chain layouts by major economies. Profound changes are taking place in policy orientation, technological pathways, capital allocation logic, and the geopolitical landscape of supply chains, exerting far-reaching impacts on the stable operation and long-term development of the global new energy industry chain.
Policies in resource-rich countries reshape supply patterns
Major lithium resource countries in Africa and South America are shifting from “exporting raw ores” to “retaining value-added processing”, with increasingly stringent regulatory policies becoming a key variable influencing global supply. Zimbabwe has suspended lithium concentrate exports to promote local downstream processing, while Sinomine Resources is actively engaging in approval procedures, reflecting the compliance challenges and policy dynamics faced by Chinese enterprises in overseas resource allocation. The country accounts for approximately 7% of global lithium production capacity and about 16% of China’s imports, making the pace of export resumption critical to the stability of domestic raw material supply.
Leveraging the advantages of the Atacama Salt Flat, Chile continues to expand production and consolidate its position as the world’s second-largest lithium producer, with output expected to reach 67,300 tonnes in 2026. The duopoly of SQM and Albemarle remains stable, and low-cost brine supply continues to serve as a key stabilizer in the market. Ghana has introduced a sliding royalty mechanism, with rates set at 5% when lithium prices fall below USD 1,500 per tonne and rising to 12% when prices exceed USD 3,200 per tonne. This approach balances national revenue with project economics and provides a new model for lithium development in Africa.
Geothermal lithium and DLE drive green transformation
Beyond traditional hard-rock extraction and brine evaporation processes, emerging technologies such as geothermal lithium extraction and direct lithium extraction (DLE) are accelerating industrialization, reshaping supply structures and cost curves. Vulcan Energy’s Lionheart geothermal lithium project in Germany is advancing the construction of the Trappelberg drilling site, integrating geothermal heating with sustainable lithium production and pioneering a new “energy + resource” development model aligned with Europe’s low-carbon and supply security objectives.
In salt lake regions such as Chile and China, DLE technologies are being actively deployed, shortening the traditional evaporation cycle of 18-24 months to just a few weeks, significantly reducing water and energy consumption, and increasing lithium recovery rates to over 90%, effectively addressing the challenges of high magnesium-to-lithium ratio brines. Unconstrained by climate conditions and capable of modular deployment, DLE technology is adaptable to a wider range of global brine resources, driving the transition of lithium extraction from “weather-dependent” to “technology-driven”, and emerging as a core pathway for low-cost and green supply in the future.
Strategic capital leads project development
Investment in lithium projects has entered a new phase, shifting from traditional debt and equity financing toward strategic consortiums, milestone-based investments, and diversified capital structures that balance risk control with long-term value. Core Lithium’s Finniss project in Australia has secured AUD 290 million in strategic financing through a combination of equity, convertible instruments, and debt, enabling phased development, rapid cash flow generation, and the revitalization of stalled assets. Atlantic Lithium’s Ewoyaa project has obtained USD 16.4 million in strategic investment, linking long-term offtake agreements with ESG compliance to meet the steady return expectations of institutional investors.
The United States has launched financing initiatives exceeding USD 30 billion and established the FORGE forum, collaborating with 54 countries and the European Union to build a critical minerals supply chain. Through a combination of government guidance and private sector participation, these efforts aim to ensure stable supplies of lithium, cobalt, and copper. Sichuan Yahua Industrial Group Co. has signed a five-year long-term agreement for spodumene concentrate, securing at least 120,000 tonnes annually to stabilize raw material supply and mitigate price volatility through long-term contracts.
Conclusion
As global demand growth converges with changes in policies, technologies, and capital on the supply side, the lithium market is shifting from “cyclical fluctuations” to a “structurally tight balance”, with long-term supply gap pressures remaining. Stable, diversified, and green lithium supply has become central to global competition in the new energy sector. As a leading company focused on DLE technology for brine lithium extraction, BICHEM believes that DLE represents a core solution to the restructuring of the global lithium supply chain. The ongoing transformation presents both opportunities and challenges, and DLE technology can mitigate policy risks in resource countries, align with green and low-carbon trends, enhance supply flexibility to stabilize the industry chain, and strengthen industrial security through technological independence and control. With the deep integration of policy, technology, and capital, the global lithium supply chain is set to move toward a new stage characterized by greater security, efficiency, and sustainability. BICHEM will continue to advance DLE technology innovation and global deployment, working with industry partners to enable efficient resource development and provide stable and sustainable lithium supply to support the high-quality development of the new energy industry.
