In the global transition toward renewable energies and electric transportation, the clean energy supply chain has become one of the 21st century’s strategic topics. Supplying raw materials such as lithium, cobalt, nickel, copper, silicon, and rare earth elements, producing lithium-ion batteries, and manufacturing solar panels all play key roles in the success or failure of clean energy projects.
This article reviews and compares the shares of different countries in this global chain and analyzes the roles of China, the USA, the European Union, Australia, the UAE, and other key players.
1. Extraction of Critical Minerals: Lithium, Cobalt, Nickel
🪨 Lithium
- Australia: the world’s largest lithium producer with a 46% share (2024)
- Chile: the second-largest producer with vast reserves in the “Lithium Triangle”
- China: despite limited reserves, has a significant share in lithium processing
- Argentina: rapidly increasing production
⚒ Cobalt
- Democratic Republic of Congo: produces over 70% of the world’s cobalt
- China: largest investor in Congo mines and controls refining
🟤 Nickel
- Indonesia: main nickel producer for batteries
- Philippines and Russia: traditional producers experiencing export declines
📌 Summary: Critical minerals are extracted in developing countries, but major players (China, USA) control refining and processing.
2. Battery Production: From Raw Materials to Vehicle Batteries
🔋 Country Shares in Lithium-Ion Battery Production (2025)
Country | Market Share | Key Feature |
China | ~75% | Complete supply chain from raw materials to cells |
South Korea | 10% | Leader in long-life battery technology |
Japan | 7% | Specialist in battery design and thermal management |
USA | 5% | Developing large projects like Tesla Gigafactory |
Europe | 3% | Focus on clean production and strict environmental regulations |
🧪 China dominates production of electrolytes, anode/cathode, BMS, and battery cells. Even American companies like Tesla and GM rely on China and South Korea for supplies.
3. Solar Panel Production: From Silicon to Modules
☀️ Main Production Steps for Solar Panels:
- Silicon extraction and purification (Polysilicon)
- Wafer, cell, and final module manufacturing
📊 Global Share in 2025
Stage | China | Other Countries |
Polysilicon | 79% | USA, Germany, Malaysia |
Wafer | 98% | China is absolute dominant |
Solar Cell | 85% | China, Vietnam, Malaysia |
Module | 82% | China, India, Turkey |
China controls the supply chain from raw material to finished solar panel product and holds an unrivaled position globally.
4. Position of Key Countries
🇨🇳 China
- Controls over 70% of battery and solar panel supply chains
- Owner or major partner in lithium and cobalt mines in Africa, South America, and Australia
- Cohesive industrial policy and extensive government support
🇺🇸 USA
- Dependent on imports of raw materials and components
- Implementing the Inflation Reduction Act (IRA) to localize clean energy production
- Investing in Gigafactory construction and domestic resource extraction (e.g., Nevada lithium)
🇪🇺 European Union
- Focused on securing sustainable and ethical supply chains
- Programs such as the Critical Raw Materials Act and Battery Passport
- Investing in clean factories and battery recycling
🇦🇺 Australia
- Main lithium supplier with strong export infrastructure
- Developing domestic refining capacity
🇦🇪 UAE (and GCC countries)
- Strategic investments in solar energy (e.g., Masdar and Noor Abu Dhabi projects)
- Participation in green hydrogen production projects but still reliant on imports of panels and batteries
5. Supply Chain Risks and Future Outlook
- High concentration in China raises concerns about supply security and source diversification
- Western countries pursue “friend-shoring” strategies for supply chain security
- Increasing investments in battery recycling and alternatives like sodium-ion batteries
- Companies like Aras Energy can secure a market share in the future by investing in storage and solar infrastructure and partnering with international brands
The clean energy supply chain is increasingly recognized as a strategic geopolitical and industrial issue. While China is currently the undisputed leader, Western and regional countries are rapidly planning to reduce dependency and develop domestic production.
For companies like Aras Energy, thorough analysis and understanding of this supply chain is the key to success in equipment sourcing, partner selection, and entry into emerging markets.
