WTW warns lithium supply chain concentration in South America raises global disruption risk

Willis Towers Watson analysis warned concentrated lithium supply chains could amplify global disruption risk as critical mineral demand rises.

Research flagged South America’s Lithium Triangle as a key vulnerability, holding nearly half of identified lithium resources.

Scenario tests showed shocks can spread via trade, logistics chokepoints, policy action, financing, counterparties, and supply chains.

Non-damage events drove losses fastest, including shipment delays, restricted access, contract disruption, pricing volatility, non-payment, and capital controls.

WTW urged companies to stress-test exposure beyond mining, including procurement, revenue timing, liquidity, debt service, and insurance response.