Al Jazeera reports, Chinese factories close as drought hits hydropower. “Factories in China’s southwest have shut down after reservoirs used to generate hydropower ran low in a worsening drought.” Unfortunately, the factory shutdowns include most of the global solar panel production, as well as Tesla electric vehicles.
Leave power for the people,” said an order from the provincial government.
Barron’s reports, “One of the suppliers with capacity in the region is the largest EV battery maker in the world — Contemporary Amperex Technology Co Ltd (300750.China), better known as CATL. That company has idled some production in Sichuan, according to reports. GM and SAIC have a joint venture that produces a lot of small electric vehicles in China.”
“A reduction in the supply of parts would affect nearly all auto makers. The industry has dealt with a lot in recent years, including Covid-19 and a semiconductor shortage. Drought is just another issue in a long line of recent problems, and it isn’t the first act of God to hit the sector. Back in March 2021, a fire at a chip plant in Japan worsened the semiconductor shortage.”