China is currently a far cheaper location than the European Union for manufacturing clean energy technoligies. As of 2023, it was around 40 percent more expensive manufacturing solar PV modules in the EU than it was in China, and almost 50 percent more expensive to manufacture batteries. There are a variety of factors that affect clean technology manufacturing costs, such as labour costs, energy costs, and component and material costs. China currently dominates the global cleantech manufacturing capacity.
Levelized cost of production for selected clean energy technologies in the European Union compared to production costs in China in 2023
(in percent)
Characteristic
Difference in cost of production relative to in China
Levelised cost of production (LCOP): A measure of the average cost of producing a unit of output from a manufacturing facility over its lifetime. For solar PV and batteries, costs relate only to the last manufacturing step, with components such as cathodes or PV cells assumed to be imported from China. For the other clean technologies and materials, production is fully local. LCOP for steel refers to blast furnace-basic oxygen furnace (BF-BOF) technology; ammonia refers to steam methane reforming (SMR); aluminium refers to the Hall-Heroult process using electricity from the grid. Costs shown here are exclusive of explicit financial support (e.g. tax credits in the Inflation Reduction Act), but may include financial support embedded in individual cost components (e.g. fossil fuel subsidies).
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IEA. (October 30, 2024). Levelized cost of production for selected clean energy technologies in the European Union compared to production costs in China in 2023 (in percent) [Graph]. In Statista. Retrieved November 20, 2024, from https://www.statista.com/statistics/1536299/eu-v-china-cleantech-manufacturing-cost-comparisons/
IEA. "Levelized cost of production for selected clean energy technologies in the European Union compared to production costs in China in 2023 (in percent)." Chart. October 30, 2024. Statista. Accessed November 20, 2024. https://www.statista.com/statistics/1536299/eu-v-china-cleantech-manufacturing-cost-comparisons/
IEA. (2024). Levelized cost of production for selected clean energy technologies in the European Union compared to production costs in China in 2023 (in percent). Statista. Statista Inc.. Accessed: November 20, 2024. https://www.statista.com/statistics/1536299/eu-v-china-cleantech-manufacturing-cost-comparisons/
IEA. "Levelized Cost of Production for Selected Clean Energy Technologies in The European Union Compared to Production Costs in China in 2023 (in Percent)." Statista, Statista Inc., 30 Oct 2024, https://www.statista.com/statistics/1536299/eu-v-china-cleantech-manufacturing-cost-comparisons/
IEA, Levelized cost of production for selected clean energy technologies in the European Union compared to production costs in China in 2023 (in percent) Statista, https://www.statista.com/statistics/1536299/eu-v-china-cleantech-manufacturing-cost-comparisons/ (last visited November 20, 2024)
Levelized cost of production for selected clean energy technologies in the European Union compared to production costs in China in 2023 (in percent) [Graph], IEA, October 30, 2024. [Online]. Available: https://www.statista.com/statistics/1536299/eu-v-china-cleantech-manufacturing-cost-comparisons/
