Managing the lithium supply chain: a contract-enabled approach across global shoring strategies

This study introduces a novel framework for managing the lithium-ion battery supply chain, which is essential for electric vehicles and smartphones. The framework integrates a contract mechanism, scheduling, and risk assessment to address post-pandemic supply chain challenges effectively. In light of heightened post-pandemic interest in decision-making between options like on-shoring, near-shoring, and offshoring, the existing literature often overlooks the importance of a flexible model that can mix these options. Our framework addresses this gap by introducing a contract mechanism focused on payment for services rather than capacity, ensuring more effective coordination across the supply chain. It emphasises the scheduling of supply chain activities to circumvent periods of high risk, such as border closures, a critical aspect previously neglected. The framework operates on a global scale, engaging six key countries and combining on-shoring, near-shoring, and offshoring approaches to optimise the life cycle of the supply chain. Furthermore, the framework incorporates a comprehensive risk assessment module for maintaining supply chain resilience. Focusing on the neglected aspects of contract mechanisms and scheduling strategies, our study offers a novel perspective on supply chain management, aiming to improve efficiency and sustainability.