KAPSARC – Resilient Chains, Fragile Links: The Paradox of Supply Security for Lithium, Nickel, and Cobalt, Dec 2025

This report analyzes the supply security and market dynamics of lithium, nickel, and cobalt, critical minerals for lithium-ion battery production.

It highlights the oversupply yet high concentration of these markets, leading to volatility and competition for supply chain control. The report discusses market tactics such as resource nationalization, export bans, and localization mandates. Lithium prices have dropped significantly since 2022, affecting investment and shifting market dynamics towards policy-driven factors. Nickel surplus driven by Indonesia's production expansion has caused price volatility, while cobalt is expected to remain oversupplied until 2035 with policy actions influencing market stability.