How the U.S. lost its lead in electric vehicles and other clean energy inventions

illuminem summarises for you the essential news of the day. Read the full piece on The Washington Post or enjoy below:

🗞️ Driving the news: Despite inventing key clean energy technologies — electric vehicles (EVs), lithium-ion batteries, and solar panels — the United States has ceded global leadership to China, which now dominates global production and market share
• Through aggressive policy support and long-term investments exceeding $231 billion, China turned these innovations into industrial and export powerhouses, leaving the U.S. struggling to maintain competitiveness

🔭 The context: The U.S. pioneered these technologies over the 20th century: solar cells in the 1950s, lithium-ion batteries in the 1970s, and early EVs as far back as the 1890s
• However, shifting political priorities, inconsistent subsidies, and early abandonment of clean tech policies (notably in the Reagan and post-1990s eras) prevented large-scale domestic adoption and commercialization
• Meanwhile, China offered stable incentives, built entire supply chains, and captured market leadership by aligning industrial and climate goals

🌍 Why it matters for the planet: China now produces 94% of lithium iron phosphate batteries, 80% of the global solar panel supply chain, and sold over five times more EVs than the U.S. in 2024
• This concentration raises concerns over supply chain resilience, economic security, and the pace of global decarbonization
• As nations race to meet net-zero targets, the ability to scale and deploy these technologies affordably and reliably is critical — and currently depends heavily on Chinese dominance

⏭️ What's next: With geopolitical competition intensifying, the U.S. faces mounting pressure to rebuild its clean tech manufacturing base and secure domestic supply chains
• The Inflation Reduction Act offers renewed momentum, but its long-term effectiveness depends on consistent policy support, increased demand stimulation, and international collaboration or competition
• Without sustained investment and clearer industrial strategy, the technological isolation of the U.S. may deepen in key sectors

💬 One quote: “The U.S. was really good at creating these technological opportunities — but we just weren’t supporting the market side enough.” – Greg Nemet, professor of public affairs, University of Wisconsin-Madison

📈 One stat: Today, China holds 85% of the world’s battery manufacturing capacity — 2,831 GWh compared to just 221 GWh in the U.S.

See on illuminem's Data Hub™ the sustainability performance of greentech companies like Tesla, CATL, First Solar, BYD,and LG Energy Solution

Click for more news covering the latest on green tech