Renewable Energy: Is the U.S. Losing the Green Energy Race to China?
President Joe Biden’s push towards renewable energy and electric cars has been met with great enthusiasm. In April, the administration unveiled massive grants and investment plans, tackling climate change and creating jobs in the process. However, there is an alarming concern lurking behind this green movement – China’s near-total control of the clean energy industry. As the U.S. relies more heavily on renewable energy sources, the nation may find itself vulnerable to China’s power over all things green.
Bloomberg data reveal that China controls over 80% of the global manufacturing capacity for 11 key clean energy components, including essential parts for solar panels, wind turbines, and electric car batteries. This dominance is in stark contrast to the U.S., which controls 0% of the manufacturing capacity for more than half of these components and maxes out at just 10% for hydrogen electrolyzers. Other global players, like Japan, South Korea, and European nations, also lag far behind China in clean tech production.
Churning out 80% of the world’s solar panels and two-thirds of the wind turbines, China’s green energy supply chain is unmatched. They dominate everything, from raw materials to components to finished products. Tongwei Group, a single Chinese solar panel company, has plans to produce four times the number of solar cells the entire U.S. installed last year. Consequently, experts have predicted that China will soon become the “main force leading the global energy transition.”
On top of its strong manufacturing capacity, China has made strategic investments in the raw materials necessary for green energy technologies, particularly in Africa. While African countries currently produce very little lithium, they are predicted to become major players in lithium mining within the next decade. The issue for the U.S. arises since China already has a significant presence in these emerging lithium producers, holding partial or total ownership of the top mining companies in Mali, the Democratic Republic of the Congo (DRC), and Zimbabwe. Moreover, China is heavily invested in African infrastructure projects as part of its Belt and Road Initiative, cementing its influence over the continent’s mineral resources.
To respond effectively to China’s green energy dominance, the Biden administration must support both public and private efforts to innovate and compete in the market. This could require substantial government subsidies for green technology initiatives, as well as strategic investments in the raw materials necessary to power this green revolution.
In conclusion, while the Biden administration has taken bold steps towards a clean energy future for the U.S., it must also address the enormity of China’s control over the clean energy industry. The U.S. risks being left behind or held hostage by its foreign competitor. To ensure a successful renewable energy transition, domestic innovation and competition against China’s green energy juggernaut must become an urgent priority.
