The transformation in energy technologies is not only a response to the climate crisis, but also a reflection of the reshaping of global economic and geopolitical balances. At the center of this transformation are fundamental technologies, especially solar panels and battery systems. China has established an unrivaled superiority in terms of production, technology, capacity and exports in these two critical areas. China’s rise in this area is intertwined not only with its economic production scale, but also with technology development, integrated supply chains and global political strategy.
In terms of solar panel production, China will control almost 80% of the global supply chain by 2024. This rate represents a dominance covering all stages of panel production (polysilicon, wafer, cell, module). Chinese manufacturers such as Longi, Trina, JA Solar and Jinko are able to both reduce costs and maintain high quality standards by integrating their production processes from beginning to end. By 2024, China alone will have added around 277 GW of new solar capacity, twice as many as the US. This rapid growth is supported not only by domestic consumption but also by expanding export markets. China’s module exports are mostly directed to India, the Netherlands, Brazil, Saudi Arabia and Spain.
However, this excessive growth in production capacity also brings some problems. China’s solar panel production capacity has reached over 1,000 GW, which is about twice the world demand. This situation has reduced the average capacity utilization rates of its production facilities to 23% due to excess supply, driving down prices and causing serious competitive problems in the global market. Countries such as the US are trying to respond to this pressure by imposing high tariffs on solar panel products imported from China. In order to bypass these tariffs, Chinese manufacturers are diversifying their export chains by establishing production facilities in Southeast Asian countries (Vietnam, Thailand, Malaysia).
China also exhibits a similar dominance in battery technologies. Approximately 75% of global lithium-ion battery production is carried out by China. This rate includes not only battery cell production, but also the production of subcomponents such as cathode, anode, electrolyte and separator. CATL and BYD, in particular, have a share of 38% and 17% in the global market, respectively, and control more than 55% of the total global battery market. In the first quarter of 2025, these two companies alone produced 171 GWh of batteries. This massive production was made possible by China’s access to raw materials, government incentives and vertically integrated production structure. China’s success in the battery field is not only remarkable in terms of quantity, but also in terms of technology. CATL is the world leader in LFP (lithium iron phosphate) technology, and has made great progress in new generation battery chemistries such as sodium ion. For example, CATL’s sodium ion battery technology has reached an energy density of 175 Wh/kg and is ready for practical use. BYD, on the other hand, provides a significant competitive advantage in both the automotive sector and energy storage systems with its high energy density LFP batteries.
This superiority in battery and solar panel production not only provides China with economic gains, but also expands its global geopolitical influence. Solar power plants and battery storage systems established by Chinese companies in African, Latin American and Southeast Asian countries make these countries’ energy systems dependent on Chinese technology. Mega projects established in the Gulf countries, especially in Saudi Arabia and the United Arab Emirates, are also increasing China’s influence in the Middle East. Energy storage projects of 11 GWh in Saudi Arabia and 19 GWh in the UAE are examples of this interaction.
China’s rise in these areas has caused strategic concerns in Western countries. The US has started to impose tariffs of up to 50% on solar panel components such as polysilicon and wafers as of 2025, and has also moved towards similar practices for battery components. The European Union is trying to increase its own production capacity with legal regulations such as the Net-Zero Industry Act. However, these efforts are far from being competitive in the short term in the face of China’s low-cost, high-volume production.
This superiority in energy technologies that China has achieved raises the question of who will manage the energy systems of the future. In both solar panel and battery production, China has become not only a supply provider, but also a strategic power that develops technology, determines standardization, and has the power to affect energy security. This situation shows that the energy transition is not only an environmental and technological issue, but also a power competition.
What will determine the direction of this transformation on a global scale will be how much further China can advance its sustainable technology leadership and how the West responds to it. In order for the West to be successful, it needs to take strategic steps in areas such as not only production capacity but also innovation, access to raw materials, infrastructure investment and international cooperation. Otherwise, the rules set by China will prevail in the energy systems of the future.
China’s global dominance in solar panel and battery production shows that the energy transition is not only an environmental necessity, but also an economic, technological and geopolitical power struggle. China’s huge production scale, low-cost supply chains, vertically integrated industrial structure and continuous R&D investments have made this country the new superpower of energy technologies. China’s cost advantage and production capacity in the field of solar panel and battery technologies have reached a level that threatens the domestic production, supply security and strategic autonomy goals of Western countries.
In this context, China’s technological superiority is a reality that is difficult to break in the short term. Although Western countries are trying to establish a balance through tariffs, subsidies and investments in new generation technologies, it will take time to get ahead of China in terms of cost and scale. In the medium and long term, the West’s progress in areas such as perovskite panels, solid-state batteries and recycling technologies may erode China’s absolute superiority. However, China’s increasing influence based on energy technologies has become an important geopolitical lever in developing countries and strategic markets.
As a result, energy transition is not just a climate policy; it is a technology and economic competition that is reshaping global balances of power. As the most powerful actor in this competition, China will continue to use energy transition technologies as a geopolitical strategic tool, while other major economies will redefine their technology, supply and cooperation strategies in search of answers. The energy world of the future will be determined not only by which country installs more renewable energy, but also by who develops and controls these technologies.
Sources
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She graduated from Çankaya University Faculty of Law in 2005. In the same year, she completed her master’s degree in Constitutional Law at Çankaya University, Department of Public Law. Until 2011, she worked as an ODY-ÜDY Instructor at Vocational Training Centers affiliated with the Ministry of Transport. For approximately 15 years, she has been working as a legal expert at the Union of Chambers and Commodity Exchanges of Turkey (TOBB). Initially, she was involved in Foreign Trade and International Logistics at TOBB and represented the United Nations for nearly seven years. She is currently serving as a legal expert in the SME Policies Directorate within the TOBB Department of Real Sector R&D and Implementation.
Meanwhile, she is working on completing her doctoral dissertation in Administrative Law at Gazi University, Department of Public Law-Administrative Law. After completing her thesis on TOBB, which is recognized by the Council of Higher Education (YÖK) in Turkey, she plans to publish it as a book.
Additionally, since 2023, she has been writing columns in the London section of “DÜNDAR HUKUK” and “DÜNDAR LEGAL SERVICE CONSULTANCY,” which have established themselves internationally, particularly in the field of energy and renewable energy.