Already a Multi-Trillion-Dollar Market 2025

China leads the world in greentech processing, refining and manufacturing Energy transition and clean energy technologies (% global share) Largest producing country Second- and third-largest producing countries Others China as largest producing countryLevers Copper Lithium Nickel Colbalt Rare earthsExtraction1Processing and refining1Clean tech manufacturing2 + other inputs Poly- siliconSolar PV BatteriesPV cells Cell anodes Battery cells Wind turbines28% 52% 33% 69% 60% 28% 16% 87% 12% 58% 29% 14%8% 23% 65% 15% 20% 76% 16%8%23% 44% 35% 23% 42% 84%32% 13% 58% 39% 85% 12%40% 16% 44% 79% 20% 52% 8% 3% 2% 3% 1%13% 14% ChinaChinaChinaChinaChina ChinaChinaChinaChinaChina ChinaDemocratic Republic of CongoIndonesiaAustraliaChile Notes: 1. 2019 data. 2. 2021 data. Source: BCG.40China is also leading on innovation China’s export profile has shifted dramatically from traditional “old economy” manufacturing goods such as appliances, furniture and clothing to a “transition economy” that manufactures solar, wind and batteries.39 It has built this new economy by establishing leadership over entire value chains, from raw material processing and refining to component manufacturing and final assembly. Meanwhile, fierce domestic competition has helped cultivate national champions capable of scaling-up globally. Figure 11 illustrates the depth of China’s positioning in solar PV, wind turbines and batteries, and the scale of the lead it has established in these technologies. For the first time, the epicentre of innovation is moving away from traditional Western hubs towards China. For example, the European Union, despite being an early climate champion, has struggled to translate its ambition into innovation leadership. While the continent excels in regulation and early-stage research and development (R&D), it faces persistent challenges in scaling-up innovations from universities, institutions and companies into wide-scale competitive industrial capabilities. Meanwhile, the US, long regarded as an innovation pioneer across sectors, is slipping behind in the clean tech race, now holding second place in patent filings for most decarbonization technologies (see Figure 12). China’s global share in major greentech sectors FIGURE 11 The epicentre of innovation is moving away from traditional Western hubs towards China. Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy 19