FOCUS: Power woes raise uncertainties in China's battery materials supply chain

October 23, 2021 / www.metalbulletin.com / Article Link

The battery raw materials supply chain in China took a breather after a week-long holiday to mark the country's national day in early October, with the lifting - partially or otherwise - of extensive power cuts announced in late September in several production hubs.

The supply chain is still vulnerable to power restrictions, however, which are likely to persist in winter.

Similar to those for other commodities such as aluminium and zinc, the battery raw materials supply chain in China - from the production of raw materials upstream to cathode and anode materials downstream - has been affected by power restrictions since September.

A majority of producers affected by the power cuts have resumed their operations in varying degrees after the October 1-7 public holiday.

But fresh power restrictions in will likely roll out in certain cities soon, sources said, though they do not expect such curbs to be too severe or prolonged for the battery raw materials sector, since it is a crucial segment that feeds into the government-advocated electrification of transportation.

Nevertheless, power restrictions still create uncertainties in both supply and demand, make market participants seeking direction more...

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