The Central 2nd Environment Protection and Inspection Group has arrived in Zhejiang one month ago which may increase tension to local people. Changxing, city of Zhejiang, is known as ¡°A city of battery¡±. Lead acid battery production capacity here accounts for 60% off the country. Increasingly environmental actions make a direct effect on the cost of material and battery, while the rising prices bring a market tense.
Many companies buy lead as required because of limited investment and requirements. Only if they increase the price for battery can meet their cost when lead price rise sharply. Lead cost is a large part, which will drive the whole battery price high as lead cost increases.
Meanwhile, once the Protection and Inspection Group take actions, those companies who produce batteries and lead materials will be the first choices. Some of them may be forced to limit production, stop production or even shut down production. Such kind of production limits will be a disaster for the battery market as it¡¯s been under chaotic situation, such as stock-outs, advances in price, or just a price tag without items. And, it¡¯s getting worse.
Within three days, many electric vehicle and accessories company have been given to suspend production, since a pep meeting called on 8th November. The effect on Zhejiang will be greater than on Tianjin which caused by inspection, because Zhejiang is the manufacturing base for electric lead acid battery around the country.
The first Injunction Systems of Environmental Protection will be carried in Changxing.
As ¡°A city of battery¡±, Changxing is the place where Chaowei Headquarters and Tianneng Headquarters located in, it¡¯s also the place where many famous battery brands such as Nandu, Xupai, Tieying, Huiyuan and Changxin located in. Changxing is a city with a huge battery production capacity which accounts for 60% throughout the country.
The first injunction of environmental protection carried on 14th August. Changxing People¡¯s Court and EPA pass the injunction to one factory in Zhejiang and order them to post the injunctions in factory. People¡¯s Court and EPA order this factory to stop the illegal production after receiving the injunctions, or else they will take judicial compulsory measures. The successful implementation of the injections provides lawful guarantee for preventing environmental offense timely and protecting social environmental benefit maximally in future.
¡°The Injunction Systems of Environmental Protection can make the process smoothly from making the administrative decisions to applying for the compulsory measures.¡± Said the person in charge of Changxing EPA. The injunction is a kind of assistance system between innovative judicial actions and environmental protection actions, that is aimed at preventing further environmental damage by stopping the illegal behaviors such as environmental pollution or destroying ecological resources.