Shanghai's environmental protection agency ordered the U.S. automotive supplier to cease output at the plant pending further investigation, according to several media reports.

News of the lead problem surfaced earlier this week when 32 children in the Kangqiao neighborhood near the plant were diagnosed with lead poisoning.

The local environmental protection agency has established a link between the poisoning and lead emitted by Johnson Controls' plant, according to media reports.

Workers at the battery plant now are on vacation. They will receive 70 percent of their salaries from now until the end of this year, a Shanghai TV station reported, citing one of the workers.

Johnson Controls said last week it will spend $100 million to build a new Chinese factory to produce batteries for vehicles equipped with start-stop systems.

The company has not yet decided where to build the plant.