China is the dominant force in the clean energy technology supply chain, accounting for the vast majority of global manufacturing capacity for several critical components. According to the authors of the newly released report, this heavy market concentration in a single country has emerged as a strategic vulnerability for the rest of the world.
“China accounts for over 70% of key components, including wind turbine blades and nacelles, as well as battery cathodes and anodes.” The report further notes that the country “accounted for more than half of global refining capacity for lithium (70%), cobalt (78%), graphite (96%) and rare earths (91%) in 2024.”
In simpler terms, this means that one country currently controls the lion’s share of the factories making the essential parts for electric vehicle batteries and wind power equipment. Furthermore, China processes almost all of the raw minerals needed to build these green technologies, giving them a level of market control that exceeds even the influence that major oil-producing nations held during the global energy crises of the 1970s.
The report “State of Energy Policy 2026” was published by the International Energy Agency in France in April 2026. It was prepared by the World Energy Outlook team under the direction of Laura Cozzi, the IEA’s Chief Energy Modeller.
