212
H. Hao and X. Sun
Fig. 6.7 HHI and HHI-WGI index for four critical materials in Lithium battery (as directly cited
from the source literature). Note refer to Formula (6.1) for the meanings of HHI and HHI-WGI
that the precondition for profit is the stable raw material supply. To this end, a more
dispersed distribution of production capacity is essential. In this regard, our study
points to the necessity to prioritize mining, metallurgy and production of lithium and
cobalt, refining and production of manganese and manufacturing footprint of lithium
battery.
It should be recognized that the distribution of production capacity in any stage is
not static. Drivers of exploitation, processing and final consumption are different but
all dynamic. The distribution of the mining footprint mirrors the regional resources
endowment in some measure, and can be reversed through investing in deposit
prospecting and mining technology progress. The processing capacity reflects the
industrialization level of a region, and production capacity will undergo radical shift
with industrial restructuring and changes in market mechanism. Final consumption
is mainly subject to the impact of population, national economy and consumption
tendency. The action mechanisms of these variables usually function inside a country.
H. Hao and X. Sun
Fig. 6.7 HHI and HHI-WGI index for four critical materials in Lithium battery (as directly cited
from the source literature). Note refer to Formula (6.1) for the meanings of HHI and HHI-WGI
that the precondition for profit is the stable raw material supply. To this end, a more
dispersed distribution of production capacity is essential. In this regard, our study
points to the necessity to prioritize mining, metallurgy and production of lithium and
cobalt, refining and production of manganese and manufacturing footprint of lithium
battery.
It should be recognized that the distribution of production capacity in any stage is
not static. Drivers of exploitation, processing and final consumption are different but
all dynamic. The distribution of the mining footprint mirrors the regional resources
endowment in some measure, and can be reversed through investing in deposit
prospecting and mining technology progress. The processing capacity reflects the
industrialization level of a region, and production capacity will undergo radical shift
with industrial restructuring and changes in market mechanism. Final consumption
is mainly subject to the impact of population, national economy and consumption
tendency. The action mechanisms of these variables usually function inside a country.