China limits electricity to factories as heatwave drives up demand

As a heatwavedrives up power consumption and depletes reservoirs, Sichuan Province, China's lithium hub, will restrict electricity delivery to manufacturers until Saturday, according to official media.

According to data from China's Meteorological Administration, temperatures in the province, which is home to about 84 million people, have been averaging above 40 to 42 degrees Celsius since last week, driving up demand for air conditioning.

The area depends on dams to produce 80% of its electricity, but last summer, rivers in the area dried up, according to Beijing's water resources ministry.

Add WION as a Preferred Source

As reported by the Guardian, the province in southwest China generates half of the country's lithium, which is used in electric vehicle batteries, and its hydropower projects power industrial hubs along the nation's east coast.

According to a notification published on Sunday, the local government has made the decision to prioritise residential power supply and has ordered industrial users in 19 out of the province's 21 cities to halt operations until Saturday.

A number of businesses, including those that produce fertiliser and aluminium, Henan Zhongfu Industrial and Sichuan Meifeng Chemical Industry, announced their production suspension in stock exchange declarations.

Production has also been halted at a Foxconn facility in the province, a supplier to Apple and a Taiwanese powerhouse, according to Taipei's Central news agency.

Depending on their demand for production, some businesses will be allowed to function at a restricted level.

“Sources estimate at least 1,200 tonnes of lithium output will be cut due to the operations disruptions in these five days,” Susan Zou, an analyst at Rystad Energy, told AFP, adding the cost of lithium carbonate had jumped since Monday.

China has had a summer of extraordinary weather, with several major cities recording their warmest days ever.

As temperatures climbed beyond 40 degrees Celsius (104 degrees Fahrenheit) in many portions of the country on Monday, official media reported that China's national observatory has once again issued a red alert for extreme temperatures.

(With inputs from agencies)

Also Watch |US delegation's Taiwan visit irks China, sanctions 7 Taiwanese officials