Sichuan is a vital region for the semiconductor and solar panel industries. Manufacturers flock to the mineral-rich region for raw materials used in the solar photovoltaic and electronics industries, such as polysilicon, a key component of solar panels. The province is also an important mining hub for lithium, which is used to make batteries for electric vehicles and smartphones.
Some analysts believe that the temporary shutdown will raise the price of polysilicon and lithium as supply decreases. Only two days after the shutdown, on August 17th, industry officials confirmed that the price of polysilicon had indeed increased.
