China blocks solar expansion with export ban

China’s Ministry of Commerce intends to restrict the export of technologies that could enable other countries to manufacture solar modules. In particular, machinery for processing the commodities and intermediate products required for construction will soon only be exportable with a permit. This could significantly delay the expansion of solar energy in Europe.

In the late 1990s, Germany was a leader in solar energy. However, domestic companies were gradually pushed out of the market, which China had flooded with low-cost solar modules. As a result, German—and European supply chains in general—became increasingly dependent on the Middle Kingdom.

China now dominates the global market for solar modules and their components. In addition, the ten largest machine manufacturers are based there. To remain capable of acting in the face of this economic power imbalance, Germany must establish its own supply chain again. It must start right at the beginning—and that means: with raw materials.

Indium, gallium, and germanium are just as important for building the latest solar cells as the know-how from the 1990s that still exists today. By investing in these technology metals, investors not only bring them into the country for solar expansion but can also benefit from attractive tax-free returns.