China has a massive 80 percent share in global manufacturing of solar panels. On Thursday, China announced $220 billion economic stimulus which boosted the value of companies involved in manufacturing and sale of solar panels and other alternative energy resources in the world.
Solar-related names posted big gains in stock markets, led by Chinese solar product manufacturers Daqo New Energy (NYSE: DQ) +14.6% and JinkoSolar (NYSE: JKS) +13.2%, while solar tracking systems provider Array Technologies (NASDAQ: ARRY) +10.3% and Canadian solar module manufacturer Canadian Solar (NASDAQ: CSIQ) +9.3% also impressed.
Other leading gainers in stock markets were SunPower (NASDAQ: SPWR) +7.3%, Shoals Technologies Group (NASDAQ: SHLS) +7.3%, Sunrun (NASDAQ: RUN) +7.2%, Sunnova Energy International (NYSE: NOVA) +7.1%, Maxeon Solar Technologies (NASDAQ: MAXN) +7.1%, First Solar (NASDAQ: FSLR) +6.8%, SolarEdge Technologies(NASDAQ: SEDG) +6.3%, Enphase Energy (NASDAQ: ENPH) +5.8%, ReneSolar (NYSE: SOL) +5.5%, and FTC Solar (NASDAQ: FTCI) +4.3%.
China is the world’s biggest solar market and aggressively developing its solar sector. The International Energy Agency (IEA) has warned that the global solar supply chain is becoming too reliant on China.
In a special report on the solar sector, the IEA says China’s share in all the manufacturing stages of solar panels currently exceeds 80%, and for key elements including polysilicon and wafers, it is set to rise to more than 95% in the coming years.
“The world will almost completely rely on China for the supply of key building blocks for solar panel production through 2025. This level of concentration in any global supply chain would represent a considerable vulnerability,” the agency wrote in the report.
The solar sector has also been buzzing after the U.S. and Canada announced a memorandum of understanding that would lift tariffs on Canadian solar products,
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