Global investments in battery manufacturing rose 60% in one year

Os investments in solar energy more than doubled last year around the world compared to the same period in 2022, while contributions to battery manufacturing registered a elevation of the order by 60%. 

The data is part ofo Advancing Clean Technology Manufacturing the new report from IEA (International Energy Agency, its acronym in English), published this Monday (06). 

The research also found that the investments in the production of five clean energy technologies (solar, wind, batteries, electrolysers and heat pumps) accumulated more than US$200 billion last year. 

It was a increase of more than 70% compared to 2022, representing just over 4% of global GDP growth (Gross Domestic Product).

For Fatih Birol, executive director of the AIE, production record number of photovoltaic and battery plants is driving not only the energy transition, but also making companies expand their factories to increase the production of more products. 

The executive also highlighted that, according to IEA calculations, around 40% of investments in clean energy production last year were in facilities that are expected to come into operation in 2024 and that, in the case of batteries, this percentage rises to 70%. 

“Although greater investment is still needed for some technologies, the direction of travel is clear. Policymakers have a huge opportunity to design industrial strategies with clean energy transitions at their core,” he said. 

Production and price by regions

According to the IEA report, the Renewable energy production is still dominated by some regions, such as China – which currently houses more than 80% of global photovoltaic module manufacturing capacity. 

However, the study points out that the Battery cell manufacturing could become less geographically concentrated by the end of this decade if all announced projects are implemented.

An example cited in the study are the cases of Europe and the United States, which could each reach around 15% of global installed capacity by the end of 2030. 

In terms of prices, the China remains the lowest-cost producer of all clean energy technologies. Battery, wind and solar production facilities are typically 20% to 30% more expensive to build in India than in China, and 70% to 130% more expensive in the United States and Europe. 

“However, it is estimated that the vast majority of the total production costs of these technologies (70% to 98%) come from operational costs, which include production factors such as energy, labor and materials – implying that The disparities in production costs observed today are not immutable and can be influenced by politics”, concludes the report.

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