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Countries are racing to capitalise on the benefits of clean technology manufacturing such as economic security, employment and the resilience of a clean energy transition.
Investment into clean technology manufacturing is becoming significant enough to register in broader macroeconomic data.
In 2023 it accounted for about 0.7% of global investment across all sectors. This means it drove more spending than established industries such as steel (0.5%).
In growth terms, clean technology manufacturing alone accounted for about 4% of global GDP growth, and almost 10% of global investment growth.
The IEAs new Energy Technology Perspectives Special Report is designed to help policymakers prepare industrial strategies. It focuses on five key clean energy technologies - solar PV, wind, batteries, electrolysers and heat pumps.
Outsized effect of solar PV on clean technology manufacturing
This first of its kind analysis shows that investment in clean technology manufacturing was around $200 billion in 2023. That grew by 70% on the 2022 figures.
Investment into solar PV and battery manufacturing led the way, accounting for more than 90% of the total investment in both years.
This investment more than doubled to about $80bn in 2023. Investment into battery manufacturing grew by about 60% to $110bn.
China accounted for three-quarters of this global investment in clean technology in 2023, down from 85% in 2022.
Investment in the US and Europe grew strongly - especially in battery manufacturing. Investment here more than tripled.
For solar PV manufacturing, investment in China more than doubled between 2022 and 2023.
"India, Japan, Korea and Southeast Asia made up most of the remaining share, with virtually no manufacturing investment taking place in either Africa or Central and South America."
Clean technology manufacturing is growing to meet net-zero needs
Near-term momentum for clean technology manufacturing is looking strong.
Around 40% of investments in 2023 were into facilities that should come online this year. Specifically, almost 70% of this manufacturing facility investment is for batteries.
Projects that are already under construction or have reached final investment decision, through 2025, together with the already existing capacity, would exceed by 50% the global solar PV deployment needs in 2030, based on the IEAs Net Zero Emission by 2050 Scenario. And it would meet 55% of battery cell requirements.
This momentum is also spreading to adjacent sectors. Almost half of committed battery manufacturing announcements in the US will be via joint ventures with automakers.
"Existing manufacturing capacity for solar PV modules and cells could today achieve what is necessary to meet demand under the NZE Scenario in 2030 - six years ahead of schedule, with only modest gaps remaining for the upstream steps of wafer and polysilicon manufacturing," says the IEA. |
