Drones Hover Over CATL Mine as Lithium Market Anxiety Rises

Traders have been flying drones over a lithium mine run by battery giant Contemporary Amperex Technology Co. Ltd. in the hope of gauging the state of the operation days before a key permit expires, a symptom of the acute supply anxiety that has gripped the market.

The lithium sector has been buffeted in recent weeks by extreme volatility in the spot, futures and equity markets amid uncertainty over production disruptions and rising government scrutiny. Major supply concerns include CATL’s Jianxiawo mine, forecast to account for about 3% of the world’s mined production. It is awaiting an extension to its mining paperwork if it is to continue working beyond this weekend.