The State of Clean Technology Manufacturing An Energy Technology Perspectives Special Briefing INTERNATIONAL ENERGY AGENCY The IEA examines the full spectrum of energy issues including oil, gas and coal supply and demand, renewable energy technologies, electricity markets, energy efficiency, access to energy, demand side management and much more. Through its work, the IEA advocates policies that will enhance the reliability, affordability and sustainability of energy in its 31 member countries, 11 association countries and beyond. This publication and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Source: IEA. International Energy Agency Website: www.iea.org IEA member countries: IEA association countries: Australia Austria Belgium Canada Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Japan Korea Lithuania Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Republic of Türkiye United Kingdom United States Argentina Brazil China Egypt India Indonesia Morocco Singapore South Africa Thailand Ukraine The European Commission also participates in the work of the IEA The State of Clean Technology Manufacturing: An ETP Special Briefing Table of contents Table of contents Key findings ................................................................................................................... 4 Part I: Introduction ........................................................................................................ 6 Part II: Analysis ............................................................................................................. 8 An update on technologies that are advancing rapidly .............................................................................. 8 Recent developments in clean technology manufacturing ........................................................................ 9 Regional concentration in clean technology manufacturing .................................................................... 14 The global market for key clean energy technologies ............................................................................. 19 Part III: Recent policy developments......................................................................... 23 United States ........................................................................................................................................... 25 European Union ...................................................................................................................................... 27 China ....................................................................................................................................................... 30 Other economies ..................................................................................................................................... 31 PAGE | 3 I EA. CC BY 4.0. Part IV: Recommendations for the G7 ....................................................................... 33 The State of Clean Technology Manufacturing: An ETP Special Briefing Key findings • Clean energy technology manufacturing is expanding rapidly, driven by supportive policies, ambitious corporate strategies and consumer demand. The global energy crisis has instilled further impetus to develop manufacturing capacity that can strengthen energy security and diversify the supply chain. This Energy Technology Perspectives (ETP) Special Briefing is designed to provide policy makers with strategic insights in this area, focusing on five critical technologies: solar photovoltaic (PV), wind, batteries, electrolysers and heat pumps. • New manufacturing projects are being announced by the day. In the short time since the last IEA analysis of clean technology manufacturing in Energy Technology Perspectives 2023 (covering announcements through to late 2022), the projected output in 2030 from announced projects for solar PV has increased by 60%, for batteries it has increased by around one-quarter, and for electrolysers by around 20%. • It is not just announcements that are posting strong growth rates. The latest data available for year-end 2022 show installed manufacturing capacity posted strong year-on-year growth for batteries (72%), solar PV (3