The Impact of Power Rationing on Lithium Battery Industry chain in September

SHANGHAI, Sep 24 (SMM) — Multiple regions have issued the dual control policies of energy consumption and secure the living power utility. SMM conducted a new round of exclusive survey on the impact of power rationing on domestic new energy industry. 

Hunan: The current thermal coal inventory and water level in the region have fallen sharply while power consumption remained bullish, resulting in a power supply gap of 300-600 kilowatt. Some NCM cathode material plants which are located in the urban area are seriously affected by power rationing policies. The monthly output is likely to decline over 40%. Those in the suburbs are less affected by the power rationing. 

Jiangsu: Some leading cathode material plants decided to suspend production until the National Day holidays. The supply of LCO and NCM cathode materials is likely to decrease. Besides, local major LFP plants said that they will close one production line and the output is expected to fall 10%. Others said that the impact is limited as the document does not specify a clear execution time. 

Inner Mongolia: The current power supply in Inner Mongolia is tight. At the same time, this region boasts many anode material producers. Among them, the graphitisation process consumes a lot of power. Local anode companies are expected to cut around 40%-50% of output in respose to the power rationing requirement.

Sichuan: The current impact on lithium battery companies in Sichuan is generally limited, but there are rumours that Sichuan is expected to send local hydropower to east China, and only thermal power supply will be retained locally. A new round of power rationing will not be ruled out in the future. 

This round of power rationing has a gerater impact on some new energy companies in Hunan and Inner Mongolia, in which some leading plants even suspended production. The impact of the power rationing on the production sales of new energy industry is within the controllable range as the energy consumption by lithium battery industry chain companies is relatively low and local authorities have rolled out preferential policies for this industry.