China’s annual investment in building its manufacturing and processing capacity has grown from US$10 billion in 2016 to US$140 billion in 2023, according to Rystad Energy. This growth has led to a significant increase in solar PV capacity and battery cell capacity, with China investing in African rare earth mineral mining projects. Rystad suggested that other countries need to reduce their dependence on Chinese-controlled materials to provide alternate destinations for minerals and disrupt existing trade routes in the renewables sector. However, the pipeline of projects outside China currently accounts for only one-quarter of the production capacity required to eliminate reliance on Chinese production. The US Department of the Treasury and the Internal Revenue Service have proposed guidance for the 45X Advanced Manufacturing Production Credit, clarifying definitions of eligible components and detailing the tax credit amount for eligible solar components. The European Parliament has also approved the Net Zero Industry Act (NZIA), which aims to bring manufacturing for renewable energy technologies within EU borders.
Solar Dominates US Energy Capacity Growth
The Federal Energy Regulatory Commission (FERC) has published data showing that solar accounted for over 75% of US electrical generating
