China’s Sichuan, Chongqing resume power supply to industry

The southwestern province had rationed power to major users from Aug. 15 after drought hit hydropower generation while residents ramped up the air conditioning to cope with soaring temperatures.

Production of energy-intensive refined metals was suspended, impacting about 5,000-6,000 tonnes of lithium salt output, around 10% of China’s monthly average of the metal used in the fast-growing electric vehicle market.

Tianqi Lithium Corp told Reuters on Tuesday its factory in Sichuan’s Shehong city had resumed normal production.

Sichuan Yahua Industrial Group could not be reached for comment.

Aluminum producer Henan Zhongfu Industrial said in stock exchange statements that its production gradually resumed from Aug. 28.

Zinc smelters affected by the power shortage have also restarted, said Dina Yu, a zinc and lead analyst at consultancy CRU Group.