China is currently dominating all steps of the photovoltaic solar panel production process, a report released by Bloomberg NEF shows. China’s investment in renewable energy industries has been massive and global market shares tell the tale. For any country looking to up its solar capacity, there is simply no way around the Chinese.
China has invested over USD 50 billion in new PV supply capacity – ten times more than Europe − and created more than 300 000 manufacturing jobs across the solar PV value chain since 2011. Today, China’s share in all the manufacturing stages of solar panels (such as polysilicon, ingots, wafers, cells and modules) exceeds 80%.
China has at least 80% of the global market share in solar manufacturing capacity, making Chinese exports an important dataset for tracking the clean energy transition. In the first half of 2023, exports of solar panels from China grew by 34%, with 114 GW shipped worldwide, compared to 85 GW in the same period last year.
After investing over US$130 billion into the solar industry in 2023, China will hold more than 80% of the world’s polysilicon, wafer, cell, and module manufacturing capacity from 2023 to 2026, according to a recent report by Wood Mackenzie titled “How will China’s expansion affect global solar module supply chains?”.
The world will almost completely rely on China for the supply of key building blocks for solar panel production through 2025. Based on manufacturing capacity under construction, China’s share of global polysilicon, ingot and wafer production will soon reach almost 95%.
As can be seen, China leads the production of the essence of solar PVs, the wafers, as around 98 % of wafers are produced in China. Although not threatening, China's main competitors are Vietnam, Malaysia, and Thailand (IRENA, 2022a). China is also responsible for producing more than 75 % of the cells, and the final PVs.
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