Manufacturing capacity for solar and batteries on track to meet net zero goals

Global manufacturing capacity for solar PV today already meets what is needed this decade on a net zero pathway, and capacity for batteries is close, according to a new report from the International Energy Agency (IEA).

Booming investment in the manufacturing of clean energy technologies, especially solar PV and batteries, is becoming a powerful economic driver globally, creating new industrial and employment opportunities.

In a first-of-its-kind analysis, Advancing Clean Technology Manufacturing finds that global investment in the manufacturing of five key clean energy technologies – solar PV, wind, batteries, electrolysers and heat pumps – rose to USD 200 billion in 2023, an increase of more than 70% from 2022 that accounted for around 4% of global GDP growth.

Spending on solar PV manufacturing more than doubled last year, while investment in battery manufacturing rose by around 60%. As a result, solar PV module manufacturing capacity today is already in line with what is needed in 2030 based on the IEA’s net zero emissions scenario. For battery cells, if announced projects are included, manufacturing capacity is 90% of the way towards meeting net zero demand at the end of this decade.

The report finds that many projects in the pipeline will be operational soon. Around 40% of investments in clean energy manufacturing in 2023 were in facilities that are due to come online in 2024. For batteries, this share rises to 70%.

IEA executive director Fatih Birol says:

“Record output from solar PV and battery plants is propelling clean energy transitions – and the strong investment pipeline in new facilities and factory expansions is set to add further momentum in the years ahead. While greater investment is still needed for some technologies – and clean energy manufacturing could be spread more widely around the globe – the direction of travel is clear. Policy makers have a huge opportunity to design industrial strategies with clean energy transitions at their core.”