China heatwave is having repercussions all the world over as local factories are forced to shut down for days due to power shortages.
Reports claim that this is the worst heatwave to hit China in the past 60 years, and the authorities are ordering factories in the Sichuan district to stop operations until August 20.
The Verge says that the world’s biggest electric vehicle battery maker, Contemporary Amperex Technology Co. Limited (CATL), is closing for six days. With its closure, Tesla assembly plants will have to wait until it resumes operations or source for parts somewhere else.
Tesla is not alone as Foxconn Technology, which makes most of Apple’s parts, is also shutting down operations. Toyota, Volkswagen, and others are all affected by the heatwave sweeping through the country.
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The temperature hit 104 degrees Fahrenheit (40 degrees Celsius in some places and the government mandated the factories’ closure to reduce pressure on the power grid.
Chinese news outlet Sichuan Daily claims that the Sichuan district is facing the most severe power supply issues at this time, which is why factories located there are staying closed for longer. Tech companies outside China rely on the many semiconductor and solar panel factories located there, and they are the worst hit by the government’s directive.
Already, industry analysts are projecting an increase in polysilicon and lithium prices because the supply would go down drastically.
However, Foxconn has stated that the shutdown would not cause much disruption for Apple products, and Volkswagen said something similar.
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