Production of photovoltaic modules and batteries

The solar PV module manufacturing value chain comprises four main steps: polysilicon production, wafer production, cell manufacturing, and module assembly. Southeast Asia is a solar PV manufacturing hub with 2 per cent – 3 per cent of the world's polysilicon and wafer capacity and 9 per cent–10 per cent of the world's cells and modules capacity.

Image: International Energy Agency Global solar module manufacturing capacity is set to exceed 1.5 TW by 2035, according to forecasts from the IEA. Its latest report, “ Energy Technology Perspectives 2024,” covers the production of solar, wind turbines, electric cars, batteries, electrolyzers, and heat pumps.

Scaling solar PV and battery manufacturing has the potential to create significant economic and social value for the region. Investment in a manufacturing industry adds to its gross domestic product (GDP) and creates jobs during both its construction phase (i.e., facility development and expansion) and operation phase.

Global solar PV manufacturing capacity has increasingly moved from Europe, Japan and the United States to China over the last decade. China has invested over USD 50 billion in new PV supply capacity – ten times more than Europe − and created more than 300 000 manufacturing jobs across the solar PV value chain since 2011.

Keeping the same number of cells, larger PV module sizes are realized, allowing a power range of over 700 W per module. In 2024, Europe's contribution to the total cumulative PV installations amounted to 23%. In contrast, installations in China accounted for 49% (in 2023 43%) and in North America for 5% respectively.

The solar PV industry could create 1 300 manufacturing jobs for each gigawatt of production capacity. The solar PV sector has the potential to double its number of direct manufacturing jobs to 1 million by 2030. The most job-intensive segments along the PV supply chain are module and cell manufacturing.