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The trail of devastation left by Hurricane Helene after it swept across the U.S. is only just being fully realized, with houses flooded, roads ripped up and EVs bursting into flames as a result of all the salt water that flooded some states. Now, it’s emerged that the storm may wreak havoc on the auto industry after it shuttered a factory that produces elements essential for microchips.
When the immense storm ripped through North Carolina last week, it destroyed facilities in the region that are operated by two companies that mine for essential minerals required for microchip production, reports Automotive News. As a result of the damage caused, the facilities are now closed, which could impact the production of chips essential for America’s auto industry:
Sibelco Group and The Quartz Corp. shut down their operations in Spruce Pine, N.C., about 50 miles northeast of Asheville, on Sept. 26 because of the hurricane, which ravaged parts of the Southeast with intense flooding. The town is one of the only sites in the world to contain high-purity quartz, which is key to making semiconductors, according to author Ed Conway, who wrote “Material World: The Six Raw Materials That Shape Modern Civilization.”
Should it persist, the halt in operations could affect global supply chains that depend on semiconductors for use in vehicles, phones, solar panels and other technologies.
“We’re listening to worried voices on this topic,” said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, which monitors the impact of semiconductor availability on the auto industry. “It’s far too early to ring the alarm bells, but making sure the supply chains are adequately provided for is definitely on everybody’s radar at the moment.”
It’s too early to know what impact the shutdown could have, but the last time American automakers faced a shortage of microchips it was not good. A shortage of computer chips brought on by the impact of the Covid-19 pandemic meant that all kinds of cars were delayed or shipped with features missing.
Just three years ago, the semiconductor shortage meant that Ford had to cut production and temporarily shutter some plants, Cadillac cut features from some Escalade models while it rummaged for parts and the Ford Bronco had features cut initially.
A version of this article originally appeared on Jalopnik’s The Morning Shift.