Extreme Weather Leads Factories in China to Limit Power, Pause Production

Sichuan province, the center of the communist China’s lithium industry, will constrain power supply to factories until Saturday (August 20th) as heat waves caused electricity demand to hike and reservoirs dried up. According to the Meteorological Bureau, temperatures in the province have reached around 40 to 42 degrees Celsius since last week, causing an increased demand for air conditioners.

 Beijing’s Ministry of Water Resources said the region relies on dams to generate 80% of its electricity, but rivers in the area have dried up this summer. Half of the nation’s lithium, which is utilized in electric car batteries, is produced in the Sichuan province. In the meantime, its hydroelectric projects also supply electricity to industrial hubs along the nation’s east coast.

 According to a notice realeased on Sunday, the local administration has chosen to give priority to domestic customers for power supply, ordering 19 industrial customers in 21 cities throughout the province to halt operations until Saturday. Several companies, including aluminum producer Henan Zhongfu Industry and fertilizer producer Sichuan Meifeng Chemical Industry, said in a stock exchange statement that they had halted production.

 Moreover, a factory in Sichuan operated by Taiwanese production giant and Apple supplier Foxconn has also been closed. Some companies will be allowed to operate at limited capacity, depending on their production needs.

 Several major cities have recorded the highest temperature during this summer’s extreme weather in the country. On Monday, the temperature climbed beyond 40 degrees Celsius in most of China, prompting the National Astronomical Observatory to issue a red signal for high temperatures once more.

 Provinces such as Zhejiang, Jiangsu and Anhui, which rely on the country’s western power, have also imposed power restrictions on industrial customers to ensure adequate power supply for households.