China’s heatwave temporarily closes Intel’s and Tesla’s battery supplier’s factories
. That’s likely because the region is reliant on hydropower, making it particularly vulnerable to the heatwave and drought that’s also drying up hydro dam reservoirs.
As noted by CNN, Sichuan is an important area for semiconductor and solar panel industries. Manufacturers flock to the mineral resource rich region for raw materials used in the solar photovoltaic and electronics industries, like polysilicon — a key solar panel ingredient. The province is also a critical mining hub for lithium, which is used to produce electric car and smartphone batteries.
Some analysts believe the temporary shutdown could increase the price of both polysilicon and lithium as supply goes down. As of August 17th, just two days after the shutdown, industry officials confirmed toHowever, some companies don’t anticipate too much disruption. According to, Foxconn — which makes Apple’s iPads in the region — said the drought hasn’t impacted them much yet. Volkswagen, meanwhile, reportedly remarked on Monday it wasn’t expecting long delivery delays.
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