Connect with us

Energy & Critical Metals

Where are Clean Energy Technologies Manufactured?

As the market for low-emission solutions expands, China dominates the production of clean energy technologies and their components.
The post Where are…

Share this article:

Published

on

This article was originally published by Visual Capitalist

Subscribe to the Elements free mailing list for more like this

Where are Clean Energy Technologies Manufactured?

Visualizing Where Clean Energy Technologies Are Manufactured

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

When looking at where clean energy technologies and their components are made, one thing is very clear: China dominates the industry.

The country, along with the rest of the Asia Pacific region, accounts for approximately 75% of global manufacturing capacity across seven clean energy technologies.

Based on the IEA’s 2023 Energy Technology Perspectives report, the visualization above breaks down global manufacturing capacity by region for mass-manufactured clean energy technologies, including onshore and offshore wind, solar photovoltaic (PV) systems, electric vehicles (EVs), fuel cell trucks, heat pumps, and electrolyzers.

The State of Global Manufacturing Capacity

Manufacturing capacity refers to the maximum amount of goods or products a facility can produce within a specific period. It is determined by several factors, including:

  • The size of the manufacturing facility
  • The number of machines or production lines available
  • The skill level of the workforce
  • The availability of raw materials

According to the IEA, the global manufacturing capacity for clean energy technologies may periodically exceed short-term production needs. Currently, this is true especially for EV batteries, fuel cell trucks, and electrolyzers. For example, while only 900 fuel cell trucks were sold globally in 2021, the aggregate self-reported capacity by manufacturers was 14,000 trucks.

With that said, there still needs to be a significant increase in manufacturing capacity in the coming decades if demand aligns with the IEA’s 2050 net-zero emissions scenario. Such developments require investments in new equipment and technology, developing the clean energy workforce, access to raw and refined materials, and optimizing production processes to improve efficiency.

What Gives China the Advantage?

Of the above clean energy technologies and their components, China averages 65% of global manufacturing capacity. For certain components, like solar PV wafers, this percentage is as high as 96%.

Here’s a breakdown of China’s manufacturing capacity per clean energy technology.

Technology China’s share of global manufacturing capacity, 2021
Wind (Offshore) 70%
Wind (Onshore) 59%
Solar PV Systems 85%
Electric Vehicles 71%
Fuel Cell Trucks 47%
Heat Pumps 39%
Electrolyzers 41%

So, what gives China this advantage in the clean energy technology sector? According to the IEA report, the answer lies in a combination of factors:

The mixture of these factors has allowed China to capture a significant share of the global market for clean technologies while driving down the cost of clean energy worldwide.

As the market for low-emission solutions expands, China’s dominance in the sector will likely continue in the coming years and have notable implications for the global energy and emission landscape.

The post Where are Clean Energy Technologies Manufactured? appeared first on Visual Capitalist.

batteries

Share this article:

Uranium Exploration Company Announces Additional Staking in the Athabasca Basin

Source: Streetwise Reports 12/22/2023

Skyharbour Resources Ltd. announced an update from its Canada-based Falcon Project along with additional…

Share this article:

Published

on

By

Continue Reading
Energy & Critical Metals

Tesla Launches New Mega Factory Project In Shanghai, Designed To Manufacture 10,000 Megapacks Per Year

Tesla Launches New Mega Factory Project In Shanghai, Designed To Manufacture 10,000 Megapacks Per Year

Tesla has launched a new mega factory…

Share this article:

Published

on

Continue Reading
Energy & Critical Metals

Giving thanks and taking stock after “a remarkable year”

An end-of-year thank you to our readers, industry colleagues and advertisers before Electric Autonomy breaks from publishing until Jan. 2
The post Giving…

Share this article:

Published

on

Continue Reading

Trending