(392e) The Impact of Circular Economy Indicators in a Mexican Lithium Supply Chain

The main lithium-producing countries in the world are Chile, Argentina, Bolivia, Australia, and China. The "lithium triangle," formed by Chile, Argentina, and Bolivia, is one of the regions with the largest deposits known. However, Mexico could take advantage of its geographical location to become one of the main lithium suppliers in North America, as it ranks 10^th in terms of lithium reserves. In recent years, lithium has become one of the most demanded resources globally, primarily due to its ability to develop energy storage technologies. More than 80% of the lithium produced is used for this purpose, with lithium-ion batteries being the preferred choice due to their high energy density and efficiency in charge and discharge cycles. The growing demand for electric vehicles has further increased the need for lithium, making it a key resource for achieving a sustainable energy transition. However, this industry has its limitations as lithium extraction can be a highly polluting process, requiring large amounts of water and potentially disrupting local ecosystems. Consequently, areas where lithium is extracted often face constraints with water scarcity, further complicating the sustainability of its production. Therefore, incorporating circular economy principles could reduce the dependence on new lithium extractions, helping to mitigate the associated environmental impacts. In this regard, the circular economy presents an opportunity to move toward a more sustainable future, enabling better resource management.

Thus, this work presents a novel mathematical formulation for evaluating the Mexican lithium supply chain. This approach enables the optimal management of lithium resources using the Absolute Material Impact indicator (DMA) to mitigate resource depletion, aligning with circular economy principles. Additionally, the proposed methodology assesses the production of various lithium compounds, aiming to maximize profits. The results show that incorporating circular economy indicators leads to a 90% reduction in water requirements. Moreover, this environmental benefit results in a 6.14% reduction in the total profits. In terms of DMA, the results indicate a 71.85% reduction compared to a scenario where circular economy is not considered. Finally, it is important to mention that the proposed methodology is generic and adaptable to other case studies; in this sense, only the appropriate parameters must be provided. However, data availability and accuracy are crucial for the reliability of the proposed approach, as incomplete, outdated, or inconsistent data can affect the robustness of the results.