Global manufacturing capacity for solar PV is already aligned with the targets set for this decade on a net zero pathway, with battery capacity not far behind, according to a new report by the International Energy Agency (IEA).
The report, titled “Advancing Clean Technology Manufacturing,” reveals that global investment in the manufacturing of key clean energy technologies surged to $200 billion (£159bn) in 2023, marking an increase of over 70% from the previous year.
This investment accounted for approximately 4% of global GDP growth.
Solar PV manufacturing saw an increase in spending, more than doubling compared to the previous year, while investment in battery manufacturing rose by around 60%.
Consequently, solar PV module manufacturing capacity is already on par with the projected demand for 2030 under the IEA’s net zero emissions scenario.
Battery cell manufacturing capacity is also close to meeting net zero demand by the end of this decade, with announced projects pushing it to 90% of the required capacity.
The report indicates that many upcoming projects are nearing operational status, with around 40% of investments in clean energy manufacturing in 2023 expected to become operational in 2024.
For battery manufacturing, this percentage rises to 70%.
IEA Executive Director Fatih Birol said: “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.”
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