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Global Clean Tech Investments in H1 Show China Slippage, Manufacturing Diversification

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The pace of clean technology investment in H1 slowed by nearly a fifth year over year, the Clean Investment Monitor said in a report on Thursday, but noted that this reflected slowing investment in China rather than a worldwide trend.

The year-on-year comparison in China is somewhat distorted by the fact that Chinese investment surged in 2025 to enable developers to complete projects ahead of a switch to market-based pricing for power while there was a similar effect in EV sales from the announced end of tax exemptions from 2026.

Chinese investment in clean technologies fell by 49% in Q1 2026 versus Q4 2025, the report said, a decline of $133 billion.

There was a rebound in Q2 sequentially, however, of 9%, the report said, while the same quarter on quarter comparison showed a 23% increase in India, 11% in the US and 4% in Europe. For India and Europe, Q2 investments exceeded those of Q2 of 2025.

There was a decline in investment in clean tech manufacturing capacity, which the report said reflected the fact that capacity in solar and battery manufacturing has raced ahead of demand, pressuring manufacturer margins, a trend visible since 2023.

There was also a drop in H1, 2026 deployment of clean electric power and clean transport technologies both down versus H2 and H1 of 2025.

Policymaker talk of reducing reliance on China for clean energy technologies appears to be showing up statistically now, with China's share of global manufacturing in this space dipping to below one third from a high of 71% in 2023, the report said.

The lull in manufacturing capacity investment may be short-lived however, judging by a 10% increase in announced, forthcoming investments in Q1, 2026, versus the prior three months.

Within manufacturing investments, solar accounted for 39% of the decline in H1, versus H2 2025, the report said, with China behind 94% of this. Within the now-smaller investments in solar manufacturing globally, India's share has shot to 48% from 5%.

Battery manufacturing investment fell 13% in Q1 versus Q4 and by a further 6% in Q2, the report said, while announced battery investments are now roughly similar to investments made in H2, 2025, with projects dispersed across India, Southeast Asia and the Middle East offering some diversification.

In terms of upstream supply, a number of electroactive battery materials facilities in Europe will also bring more diversification at a time of heightened concern over concentration of such manufacturing in China.

Investment in critical minerals rose sharply in H1, up 50% since a mid-2025 low, with lithium and graphite projects prominent among them, with lithium projects forthcoming in Argentina, France, China and the US. For graphite, investment will focus on Canada, China, Malaysia and Malawi.

Sums allocated to production of sustainable aviation fuels fell have slipped after a 2024 peak but SAF was still the largest component of announced manufacturing and industry investments in H1, 2026, the report said.

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Oil & Energy

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Oil & Energy

Trump Says Oil Prices Above $100/bbl Could Persist Through Midterms, US Not Seeking Iran Talks

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Oil & Energy

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