Global cleantech manufacturing cost comparisons by market| ��ƽ��

Difference in the levelized cost of production for selected clean energy technologies in selected markets compared to production costs in China in 2023

Characteristic	United States	EU	South Korea	Other Southeast Asia	India
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Release date

October 2024

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Region

Asia, China, South Korea, United States, EU

Survey time period

2023

Supplementary notes

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).

Citation formats

China is the cheapest location for manufacturing various key clean energy technologies. As of 2023, it was around ** percent more expensive manufacturing solar PV modules in the United States than it was in China, and around ** percent more expensive to in the European Union. 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.