cross-posted from: https://exploding-heads.com/post/170349

The solar PV supply chain starts with polysilicon, a key raw material needed to create wafers. China is home to seven of the top 10 producers of polysilicon, which includes companies like Tongwei Solar and Asia Silicon.

Where China is most dominant though, is in the manufacturing of wafers and cells. This is partly because it’s more economical to make these components close to wherever polysilicon is being produced.

The second-largest producer of cells and panels is the APAC region (ex-China), at 12% and 15% of total capacity. However, according to U.S. officials, much of this output is actually owned by Chinese firms attempting to evade U.S. tariffs.

While these companies would normally be subject to higher tariffs, the Biden administration has paused any tariff increases for the next two years. This can be interpreted as a sign of the country’s dependence on China for clean energy infrastructure, which could prove problematic given China’s history of economic coercion.