UK companies could face disruption from shocks to lithium supply chains in Chile, Argentina and Bolivia, according to research from WTW and Cullen Hendrix of the Peterson Institute for International Economics.

Businesses exposed to batteries, electric vehicles, energy storage and other technologies reliant on critical minerals could see losses related to export restrictions, labour disputes, political intervention and infrastructure problems.

WTW tested three scenarios: an earthquake affecting lithium operations in Bolivia and Argentina, an export levy imposed by Argentina during economic stress and a labour dispute at a critical Chilean port. Across the scenarios, the research found that restricted access, operating restrictions, delayed settlement and non-payment could become significant sources of financial loss.

Commenting on the findings, Cullen Hendrix, senior fellow, Peterson Institute for International Economics, said: “In complex operating environments like the Lithium Triangle, disruption rarely follows a single pathway. Environmental, political and operational pressures tend to escalate together, often under conditions of uncertainty, creating impacts that can spread well beyond the initial event.

"The real challenge for organisations is not simply absorbing the initial shock but making timely decisions before disruption translates into financial stress. Scenario testing creates value when the discussion informs business decisions, helping leaders challenge their strategy, investment, resilience and preparedness.”

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