Wednesday, July 24, 2024

CATL shuts down Sichuan plant during power crisis due to heatwave

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Bad news came from several automotive factories located in China, more precisely in Sichuan Province. Where, the region has experienced extreme heat temperatures since last July.

The temperature exceeded 104 F or the equivalent of 40 degrees Celsius for days making demand for air conditioning soaring and electricity demand rising sharply. This event became the worst in the last 60 years, quoted from the Autocar page.

This incident led the local government to order factories in the affected areas to temporarily close for six days, including Toyota, which has a large factory, to suspend factory operations until August 20, 2022.

CATL, the world’s top battery producer, has also suspended activity at its main lithium battery base in Yibin until August 20. Volkswagen, too, will face delays, due to the action, although it is said that it expects only a slight delay for customers

Apart from the heat, drought also hit the region which reduced the amount of electricity generated from hydroelectric power plants, prompting the government to order electricity savings in several cities.

This problem is certainly a concern, because China is one of the countries that greatly affects automotive manufacturers, such as the Covid-19 condition that has spread, making manufacturers have to close factories for some time and hamper production.

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