China continues to dominate global clean-tech manufacturing in 2026, while the United States, Europe and India are investing billions of dollars in solar panels, electric vehicle (EV) batteries, energy-storage systems and wind equipment. Major manufacturing projects by CATL, BYD, First Solar, Qcells, Toyota, Volkswagen, Reliance Industries and Tata Group demonstrate the growing competition for industrial leadership.
According to the International Energy Agency (IEA), the global market for key clean-energy technologies reached nearly $1.2 trillion in 2025. However, annual manufacturing investment declined from nearly $220 billion in 2023 to below $200 billion in 2024.
The competition is increasingly determined by factory output, manufacturing costs, supply-chain integration, technology and exports rather than investment announcements alone.
China Leads Global EV Battery and Solar Manufacturing
China remains the world’s largest clean-tech manufacturing hub, supported by integrated supply chains, extensive production capacity and competitive manufacturing costs.
According to the IEA Global EV Outlook 2026, China manufactured approximately 16 million electric cars in 2025, representing nearly 75 percent of global production. Chinese electric-car exports exceeded 2.5 million vehicles.
China also accounted for more than 80 percent of global battery-cell production, approximately 85 percent of cathode active-material production and more than 90 percent of anode active-material production.
Major Chinese clean-tech manufacturing projects
CATL – Lithium-ion battery manufacturing
CATL operates major battery manufacturing facilities in Ningde, Yibin and other Chinese industrial locations. Its manufacturing network supplies batteries for electric vehicles, commercial transportation and stationary energy storage.
CATL’s extensive production capacity and investment in lithium iron phosphate (LFP) technology strengthen China’s position in global battery supply chains.
BYD – Integrated EV and battery manufacturing
BYD manufactures electric vehicles, Blade batteries, power electronics and other automotive components. Its vertically integrated operations reduce dependence on external suppliers and support manufacturing efficiency.
LONGi Green Energy – Solar manufacturing
LONGi produces solar wafers, cells and modules, including high-efficiency photovoltaic technologies. Its integrated manufacturing capabilities support China’s domestic solar market and international exports.
JinkoSolar – Solar cells and modules
JinkoSolar operates large-scale solar manufacturing facilities in China and international markets, producing photovoltaic wafers, cells and modules.
China’s main challenge is overcapacity, particularly in solar manufacturing, where aggressive pricing has weakened margins despite strong global demand.
United States Invests Billions in Solar and Battery Factories
The United States is expanding domestic clean-tech manufacturing through investments in solar modules, battery cells and advanced energy-storage technologies.
First Solar: $1.1 Billion Alabama Solar Factory
First Solar invested approximately $1.1 billion in its Alabama manufacturing facility, adding 3.5 GW of annual thin-film solar module capacity.
The factory, commissioned in September 2024, directly employed approximately 855 workers during 2025.
First Solar’s cadmium telluride technology differentiates its products from conventional crystalline-silicon solar modules manufactured predominantly in Asia.
Qcells: 8.4 GW Solar Module Manufacturing in Georgia
Hanwha Qcells expanded its manufacturing operations in Georgia, with its Cartersville facility beginning solar-cell production in June 2026.
The company’s integrated manufacturing programme targets 3.3 GW each of ingot, wafer and solar-cell capacity.
Together, Qcells’ Cartersville and Dalton facilities have approximately 8.4 GW of annual solar-module manufacturing capacity, supporting a workforce approaching 4,000 employees.
The investment is intended to strengthen domestic solar supply chains and reduce dependence on imported photovoltaic components.
Toyota: $13.9 Billion North Carolina Battery Factory
Toyota began production at its $13.9 billion battery manufacturing facility in Liberty, North Carolina, in 2025.
The factory covers approximately 7 million square feet and is designed to accommodate 14 battery production lines.
The facility will manufacture batteries for hybrid, plug-in hybrid and battery-electric vehicles, with planned employment reaching approximately 5,100.
Toyota’s investment demonstrates the growing importance of localized battery production for the US automotive industry.
Tesla: Battery and Energy Storage Manufacturing
Tesla operates battery manufacturing facilities in Nevada and Texas, alongside Megapack energy-storage system production in Lathrop, California.
These operations support electric vehicle production and utility-scale battery storage, two important segments of the US clean-tech market.
Europe Expands EV Battery Manufacturing Despite Cost Challenges
Europe is developing domestic battery production to reduce reliance on imported cells and strengthen its automotive manufacturing industry.
However, European manufacturers face higher electricity, labor and financing costs than many Asian competitors.
The IEA estimates that manufacturing efficiency accounts for more than 40 percent of the battery-cell production-cost difference between China and Europe.
Volkswagen PowerCo: 40 GWh Battery Factory in Germany
Volkswagen’s PowerCo commissioned battery-cell production at Salzgitter, Germany, in December 2025.
The first expansion stage targets 20 GWh of annual production capacity, sufficient for approximately 250,000 electric vehicles, depending on battery size.
The factory has the potential to expand to 40 GWh annually.
Its manufacturing building covers approximately 69,000 square metres. PowerCo also plans to replicate its standardized battery factory design in Spain and Canada.
ACC: Battery Manufacturing in France
Automotive Cells Company (ACC), backed by Stellantis, Mercedes-Benz and TotalEnergies, has developed battery-cell manufacturing at Billy-Berclau/Douvrin in France.
The facility supports European automotive manufacturers seeking regional battery supplies.
Verkor: Dunkirk Battery Gigafactory
French battery manufacturer Verkor is developing production capacity at Dunkirk to supply electric vehicle manufacturers.
The investment forms part of Europe’s broader effort to establish competitive battery manufacturing and reduce dependence on Asian suppliers.
Europe also retains strengths in wind turbine manufacturing, power electronics and electrical equipment through companies such as Siemens Gamesa, Vestas and Siemens Energy.
India Emerges as a Solar and Battery Manufacturing Challenger
India is expanding clean-tech manufacturing through solar production, battery gigafactories and government-supported industrial programmes.
During the first half of 2026, India added 50.6 GW of solar-module manufacturing capacity and 9.7 GW of solar-cell capacity.
By June 2026, cumulative manufacturing capacity reached 261.7 GW for solar modules and 36.6 GW for solar cells, according to India’s solar manufacturing capacity assessment.
The difference between module and cell capacity highlights India’s continued dependence on upstream photovoltaic components.
Reliance Industries: 20 GW Solar and 100 GWh Battery Ambitions
Reliance Industries is developing an integrated clean-energy manufacturing complex covering more than 5,000 acres at Jamnagar, Gujarat.
Its manufacturing programme includes:
20 GWp of targeted annual integrated solar manufacturing capacity.
An initial 40 GWh battery manufacturing phase, with longer-term ambitions reaching 100 GWh annually.
Electrolyser manufacturing designed for scalability to 3 GW annually.
These figures represent development targets rather than confirmed full-scale production.
Reliance aims to integrate solar, batteries and hydrogen-related technologies within its clean-energy manufacturing ecosystem.
Tata Agratas: 20 GWh Battery Factory in Gujarat
Tata Group’s Agratas is constructing a battery-cell manufacturing facility at Sanand, Gujarat.
The project occupies approximately 320 acres, with its first phase targeting 20 GWh of annual battery capacity and production planned for 2027.
In April 2026, Agratas reported completion of the structural steel frame.
The main building spans approximately 105,000 square metres, with more than 24,000 tonnes of steel deployed and peak construction employment exceeding 2,500 workers.
Waaree Energies, Adani Solar and Vikram Solar
Waaree Energies, Adani Solar and Vikram Solar are expanding India’s photovoltaic manufacturing ecosystem.
Their investments support solar modules, cells and higher-efficiency photovoltaic technologies, helping India develop domestic manufacturing capabilities.
However, competitive wafer, polysilicon and equipment supply remains essential for reducing import dependence.
Clean-Tech Manufacturing Projects: Investment and Capacity Comparison
| Company | Country | Investment or capacity | Project status |
| First Solar | US | $1.1 billion; 3.5 GW | Operating |
| Qcells | US | 8.4 GW modules | Operating; upstream expansion |
| Toyota | US | $13.9 billion; 14 lines planned | Production started |
| Volkswagen PowerCo | Germany | 20–40 GWh | Production started; ramp-up |
| Reliance Industries | India | 20 GWp solar; 40–100 GWh batteries | Phased development |
| Tata Agratas | India | 20 GWh batteries | Construction; 2027 target |
Note: GW and GWh represent different measures of manufacturing capacity and are not directly comparable. Planned capacity is distinguished from operational output.
Who Will Lead Clean-Tech Manufacturing by 2030?
China remains the strongest global clean-tech manufacturing economy, combining production scale, integrated supply chains and established export markets.
The United States is expanding domestic solar and battery production through major investments by First Solar, Qcells and Toyota. Europe is strengthening battery manufacturing through Volkswagen PowerCo, ACC and Verkor.
India is emerging as a manufacturing challenger, supported by investments from Reliance Industries, Tata Group and leading solar manufacturers.
The IEA Energy Technology Perspectives 2026 identifies supply-chain concentration and manufacturing competitiveness as important factors shaping the industry’s future.
By 2030, leadership will depend on actual production, factory utilization, manufacturing costs, domestic value addition and export profitability.
China currently leads in manufacturing scale, but the United States, Europe and India are developing competitive positions in selected clean-energy technologies.
SHAFANA FAZAL
