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Rice, Lithium and Metals at Risk in China’s Extreme Summer

  • Sichuan province reels from worst drought since early 1960s
  • Goldman says grain supplies are most at risk from heat wave
China’s rice harvests will be at greatest risk if severe weather is prolonged.

China’s rice harvests will be at greatest risk if severe weather is prolonged.

Source: AFP/Getty Images

Drought and power curtailments across a swath of southern China are threatening supplies of everything from grains and aluminum to battery materials used in electric vehicles.

Sichuan extended industrial power cuts as the most intense heat wave since 1961 depletes reservoirs used for hydropower. Other regions along the Yangtze River are also battling severe temperatures. While the disruptions may be short-lived, rice harvests will be at greatest risk if the severe weather is prolonged, according to Goldman Sachs Group Inc.