China‘s Sichuan province has ordered major industrial clusters to shut down to save electricity supply as the prolonged heatwave has dried reservoirs and increased energy demand.

The region is considered a key manufacturing area for the semiconductor and solar panel industries.

The province, one of the major industrial hubs in China, is rich in mineral resources, including lithium, a key component for electric vehicle batteries.

Sichuan relies for nearly 80% of its electricity needs on hydropower. Last year, authorities switched on two turbines of the ‘world’s second’ hydropower plants in Sichuan, Baihetan Hydropower Station.

Once fully commissioned, it is predicted to generate 16GW of electricity.

Toyota Motor Corporation and the battery manufacturer CATL will reportedly shut their factories as a result of the drought-induced energy crisis.

Millions of people are now facing rolling power cuts as the heatwave creates electricity shortages, state media report.