China is accelerating its clean energy push, leaving rivals scrambling to catch up in the global power race.
While Western politicians debate climate policy and energy independence, China has quietly built an empire that makes the oil age look quaint by comparison. The numbers are staggering and undeniable: China now produces more than 60 percent of the world’s electric cars and 80 percent of the batteries that power them.
Energy expert Kelly Sims Gallagher from Tufts University puts it bluntly: “It’s probably a good thing for the climate because these clean technologies are diffusing all over the world.” The question isn’t whether China is winning the global energy race—it’s whether anyone else is even still competing.
1. China’s solar dominance makes Saudi Arabia’s oil reserves look small
China had already reached 890 GW of solar capacity and 520 GW of wind power by the end of 2024—totaling 1.4 TW and surpassing their 2030 target six years ahead of schedule. The country is cementing its position as the global leader in renewables development with 180 GW of utility-scale solar and 159 GW of wind power already under construction. The scale is breathtaking: this total is nearly twice as much as the rest of the world combined.
Solar alone saw a record-breaking 45.2% increase in 2024, adding 277 GW and achieving 887 GW overall capacity. In April 2025, wind and solar power together generated a quarter of the country’s electricity—the highest monthly share on record. This isn’t just impressive—it’s reshaping global energy markets faster than most governments can even draft policies.
2. Chinese battery makers control the world’s electric future
CATL continued as the world’s largest power battery manufacturer in 2024 with a 37.9% share, while BYD held 17.2% of the global market. Together, these two Chinese companies control over half the global EV battery market. China represents nearly 90% of global cathode active material manufacturing capacity and over 97% of anode active material manufacturing capacity.
The integration is remarkable: China’s battery ecosystem covers every step of the supply chain, from mineral mining and refining to production equipment, components, and final battery assembly. Over 70% of all EV batteries ever manufactured were produced in China, creating extensive manufacturing expertise that no other country comes close to matching.
3. Manufacturing costs in China make competitors look like luxury brands
China produces over three-quarters of batteries sold globally, with average prices dropping 30% faster there than anywhere else in 2024. Chinese batteries cost 30% less than European batteries and 20% less than North American ones. This cost advantage isn’t just about cheap labor—it’s about economies of scale and supply chain efficiency that competitors can’t match.
Production costs in Europe are about 50% higher than in China, while the battery supply chain ecosystem remains relatively weak with persistent skilled worker shortages. The bankruptcy of Northvolt—Europe’s largest investment in a homegrown battery maker—underscores the difficulties of competing with Chinese producers.
4. China’s clean energy exports rival oil revenues from entire regions
The International Energy Agency estimates that China’s clean tech exports will be worth more than $340 billion by 2035—about the same as the oil export revenue of Saudi Arabia and the United Arab Emirates combined in 2024. Chinese exports of EVs, batteries, and solar and wind products to the Global South surged to account for a record 47% of the total in 2024.
China’s renewable product exports grew by 35% from 2019 to 2023, with Chinese EV battery makers capturing 60% of the global market share in 2023 alone. When tariffs block access to Western markets, China simply pivots to developing nations hungry for affordable clean technology.
5. Investment levels that dwarf the rest of the world combined
China’s investments in clean energy technologies in 2023 exceeded the cumulative total of the other top 10 investing countries combined. In 2024, the country led global energy transition investment, accounting for two-thirds of the $2.1 trillion spent worldwide on everything from power grids to electric transport.
China’s investment in R&D for clean energy technologies was 2.5 times the global average in 2023. While other nations debate budget allocations, China is systematically outspending everyone else on the technologies that will define the next century of economic growth.
6. Research and development that creates technological moats
China holds 700,000 clean energy patents—over half of the world’s total—leading in breakthroughs like 5-minute EV charging systems and advanced nuclear reactor designs. CATL announced in April 2024 that it had developed a fast-charging battery capable of a 1,000 km driving range off a single charge, with 400 km range achievable from just a 10-minute charge.
These aren’t incremental improvements—they’re breakthrough technologies that solve fundamental barriers to EV adoption. Chinese EV battery start-ups are now working to develop batteries with a 2,000 kilometer range, pushing the boundaries of what’s considered possible.
7. Critical mineral processing creates chokepoints for competitors
China dominates the supply chain for raw materials needed for the green revolution, serving as the largest producer of most processed critical minerals like cobalt, nickel, and graphite. China refined three-quarters of the world’s cobalt and 91% of its graphite last year, creating strategic chokepoints for competitors.
Starting in the 1990s, while developing countries tightened environmental rules, Beijing gradually took over these toxic production processes to secure what it considered strategic resources. This wasn’t accidental—it was strategic foresight that recognized the future value of these industries.
8. Economic integration makes clean tech a growth engine during slowdowns
With China’s economy slowing sharply, renewable energy has become one of the few bright spots amid struggling consumption, employment, and property markets. Green tech made up more than 10% of China’s growth in 2024—a record contribution. Clean energy now contributes over 10% of China’s GDP, with a total economic value of $1.9 trillion.
This creates powerful political momentum. As one Peking University energy expert noted: “Why is everyone in China so keen to develop these industries? Of course it’s good that they are sustainable, but the bigger reason is that people can make money.” When economic interests align with strategic goals, policy becomes remarkably consistent.
9. Global infrastructure projects that create lasting dependencies
Since 2023, Chinese companies have announced $168 billion in foreign investments in clean energy projects, including solar farms in Saudi Arabia, wind turbines in Brazil, and nuclear reactors in Pakistan. The country is expanding its reach by shifting its Belt and Road Initiative toward green energy projects worldwide.
These infrastructure investments create long-term dependencies that go far beyond simple trade relationships. When your power grid depends on Chinese technology and expertise, energy independence becomes a much more complex proposition than most countries realize.
10. Manufacturing scale that approaches absurd levels of dominance
China has more than 80% of the world’s solar manufacturing capacity, with Chinese companies accounting for 83.3% of global solar panel production capacity in 2024. Between March 2023 and March 2024, China installed more solar than it had in the previous three years combined, and more than the rest of the world combined for 2023.
China produces 63% of the world’s solar photovoltaics and operates both the world’s largest solar panel manufacturing capacity and the largest domestic solar market. This level of market concentration would trigger antitrust investigations in any other industry.
11. Policy consistency that spans decades while competitors flip-flop
“Several of the clean energy industries were identified by the government several decades ago as strategic industries, where they really wanted to invest and position themselves as the global leader,” explains Georgetown University’s Joanna Lewis. China made strategic investments in all aspects of renewable technologies across multiple five-year plans, from solar and wind capacity to green hydrogen and battery storage supply chains.
China’s dominant position across clean technologies results from decades of sustained effort, using mandates, incentives, and comprehensive energy and industrial policy to enable business investment. While Western democracies change direction with every election cycle, China executes multi-decade strategies with remarkable consistency.
12. Technological innovation that solves real-world problems better than competitors
“They have far superior in-vehicle technology,” Ford CEO Jim Farley recently admitted. “We are in a global competition with China, and it’s not just EVs. And if we lose this, we do not have a future Ford.” Chinese enterprises lead in vehicle technology from innovative suspension systems to digital features, autonomous driving, and interactive voice control.
One Chinese EV buyer chose a local brand over international competitors because it offered “cost, cuteness and convenience, with its neat four-seat design, fast acceleration and app-controlled air conditioning.” These aren’t just cheaper versions of Western products—they’re often better designed for modern consumer expectations.