Tesla and SAIC Motor told Shanghai’s government they may have difficulty maintaining production if a power crunch in Sichuan continues to impact suppliers, people familiar with the matter said, prompting city officials to ask the southwestern province if it could prioritise electricity for the carmakers’ suppliers.
Sichuan is one of China’s most populous provinces. It is highly reliant on hydropower, making it particularly vulnerable to a heatwave and drought that is pushing up air-conditioning demand and drying up reservoirs behind hydro dams. Tesla is co-ordinating with the Shanghai and Sichuan governments to ensure its suppliers in Sichuan have ample power, the people said, adding that the carmakers had not seen any production delays as yet.
Toyota and China’s Contemporary Amperex Technology, the world’s top battery maker, earlier closed plants in Sichuan, with the Japanese automaker shutting a factory in the provincial capital of Chengdu and CATL halting activity at its major lithium battery base in Yibin. Both suspensions are expected to last through August 20.
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