Chapter Seven focuses on China’s domestic policy imperatives and regulatory/policy support to enhance its dominance in the lithium supply chain. It examines incentive regimes designed to support EVs and the policy transition from government-led to market-oriented approaches. Given the increasing demand for EV power batteries and the supply shortage for lithium resources and products, this chapter critically analyses whether and to what extent China can achieve greater lithium supply chain sustainability. It highlights the need for sustainable material consumption through harmonised circularity standards and indicators such as recyclability, efficiency, environmental protection, carbon footprint, corporate due diligence, and accountability.