Automakers racing to make more electric vehicles have a problem: Climate change is catching up with the industry.
On Monday, authorities in China’s Sichuan province — the source of about a fifth of the country’s lithium production — extended electricity cuts to some industrial users as the most intense heat wave in more than 60 years depletes reservoirs used for hydropower.
Volkswagen said last week its factory in the region was affected by the power shortage and that it expected a slight delay in deliveries to customers. Toyota and battery-maker CATL have temporarily closed factories. Tesla and China’s SAIC Motor told authorities in Shanghai — roughly 2,000 kilometers to the east of Sichuan’s capital city of Chengdu — that they may have difficulty maintaining production if the power crunch continues to impact suppliers.