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Drought-Fueled Power Crisis in China Poses Risk to Clean Energy

  • Factory outages in Sichuan to impact solar, EV battery sector
  • Bosch is latest manufacturer to confirm plant disruptions
The exposed riverbed of the Jialing River, near the confluence with the Yangtze, in Chongqing on Aug. 17.
The exposed riverbed of the Jialing River, near the confluence with the Yangtze, in Chongqing on Aug. 17.Photographer: Qilai Shen/Bloomberg

Power outages across China’s Sichuan province pose a new threat to clean energy supply chains already pressured by high costs of raw materials.

Disruptions at manufacturing plants in the region are likely to impact output of lithium compounds for electric car batteries and polysilicon used in the production of solar panels, according to Dennis Ip, an analyst with Daiwa Capital Markets.