A transition to 100% clean energy is an urgent priority worldwide to mitigate the worst impacts of climate change and preserve a livable planet. Solar power is jetting us towards that goal.
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By 2022, the US had installed 2.6 gigawatts (GW) of solar power, which is enough to provide electricity for one third of the households in Los Angeles. Since then, the price of electricity generated from solar panels (photovoltaic, or PV modules) has dropped by 85%, and today the US boasts more than 126 GW of installed capacity, enough to power the households in both California and Texas.
The growth in solar power has been exponential over the past decade and continues to rise. The US solar industry has set a target to supply 30% of the nation's energy generation by 2030.
However, manufacturing the solar panels required for this significant increase in solar power generation necessitates a surge in the mining of raw materials. There are numerous issues associated with extracting the silicon, silver, aluminum, and copper needed for solar panels. Can governments and companies ensure that workers in the solar supply chain benefit from safe, just, and well-compensated livelihoods while ensuring that the communities most impacted are involved as active collaborators, treated with respect and dignity? This post examines the concerns surrounding the solar panel supply chain and the necessary steps the industry must undertake if solar power is to expand in a responsible and sustainable manner.
(To understand how these raw materials are assembled into electricity-generating panels, check out my previous post How Can Ultra High-Capacity Sorting Robots Transform Your Warehouse Efficiency?.)
Concerns with mining raw materials
According to the US Department of Energy (DOE), approximately 12% of all silicon metal produced globally (also referred to as metallurgical-grade silicon or MGS) is transformed into polysilicon for solar panel manufacturing. China accounts for around 70% of the world's MGS and 77% of the world's polysilicon. The conversion process from silicon to polysilicon requires very high temperatures, and in China, it is primarily powered by coal. The Xinjiang region, which has abundant coal resources and low electricity costs, is responsible for producing 45% of the world's polysilicon.
Reports indicate that some polysilicon plants in Xinjiang have employed forced labor of Uyghurs, an intensely persecuted Muslim ethnic minority. In June 2021, a US Withhold Release Order prevented imports containing silicon from Hoshine Silicon Industry Co. Ltd and its subsidiaries from entering the US unless importing companies could prove they were not produced with forced labor. The December 2021 Uyghur Forced Labor Prevention Act expanded the requirement for all US companies importing silicon from Xinjiang to confirm that their supply chains are free of forced labor.
Ten percent of the world's silver is currently used for solar panels, which creates its own set of challenges for the supply chain. By 2030, in a scenario where renewable energy becomes the norm and assuming current solar technology and recycling rates, silver demand for solar power could exceed 50% of global reserves.
Silver mining, primarily centered in Mexico, China, Peru, Chile, Australia, Russia, and Poland, can lead to heavy metal contamination and displacement of communities. In Guatemala, the Indigenous Xinka community gathered over 85,000 signatures urging Pan American Silver to refrain from restarting its dormant operations due to issues such as water contamination, lack of proper consultation with the community, and alleged threats against peaceful protesters.
While silicon and silver represent substantial components for solar panels, it remains critical to ensure sustainable and ethical sourcing of other materials, even in smaller quantities. For instance, the small amount of aluminum used in solar panels is sourced from bauxite, which often encroaches on Indigenous lands, particularly in Australia (where 28% of the world’s bauxite is produced) and Guinea (22%). China also holds a significant position, producing 22% of the world's bauxite and processing 56% into aluminum using an energy-intensive method.
Copper faces similar land use challenges as aluminum. According to the United States Geological Survey, 27% of global copper production occurs in Chile, 10% in Peru, 8% in China, and 8% in the Democratic Republic of the Congo. In a future with 100% renewable energy, copper demand for solar projects could nearly triple according to the International Energy Agency (IEA).
The Institute for Human Rights and Business notes that of the top 300 undeveloped copper ore reserves globally, 47% are located on or near Indigenous lands, 65% are situated in regions with high water risk, and 65% are found within or adjacent to areas of biodiversity conservation.
The manufacturing process spans the globe
Solar panel production consists of three key components: the silicon wafer, the solar cell, and the photovoltaic module. A significant portion of these components is manufactured overseas, presenting significant opportunities for innovative domestic solutions.
The silicon wafer is the thin slice of metal converted into a solar cell, and as of 2022, 97% of these are produced in China. A decade prior, the US was self-sufficient enough to supply 80% of its silicon wafer demand. By February 2022, domestic wafer production had vanished due to lower prices abroad and Chinese tariffs, though several US facilities have announced forthcoming production plans.
During the manufacturing process, boron and phosphorus are added to the wafers. Then, silver wiring is integrated to create solar cells capable of converting sunlight into electricity. The first US crystalline silicon solar cell plants are planned to open soon, although most current production occurs in South Korea, Malaysia, China, and Vietnam.
A solar PV panel or 'module' consists of a series of solar cells, ranging from 36 to 144 cells, assembled on top of a robust polymer back sheet with tempered glass on top. More than three-quarters of PV modules are produced in China, where manufacturing costs are 30-40% lower than in the US. Approximately 20 US-owned, US-based solar module and shingle manufacturers exist, with ten located in California and others scattered across New York, Ohio, Texas, Indiana, New Jersey, and Arizona.
A more sustainable, responsible supply chain is possible
As outlined earlier, numerous challenges are linked to the mining and manufacturing processes of solar panels. However, effective policy implementations and technological advancements can ensure the continuous expansion of solar power supply while promoting responsible and sustainable solar supply chains.
Here are four strategies that governments and industry players can adopt to mitigate the environmental, social, and energy challenges linked to solar panel production:
- Ensure ethical supply chains. Governments and solar companies can ensure ethical sourcing of raw materials by mandating that mining and refining companies obtain the active, informed consent of affected communities. Companies can also engage in regulatory standards such as the Silicon Valley Toxics Coalition Solar Scorecard.
- Decarbonize manufacturing processes. Fortunately, innovative methods are emerging that reduce the electricity consumption required for polysilicon production. For instance, a new production process called the 'fluidized bed reactor' could utilize 80-90% less energy than the extensively used Siemens method. Moreover, producing solar panels in areas with access to cleaner energy sources, alongside appropriate policies to encourage such practices, can significantly reduce the manufacturing carbon footprint.
- Improve panel, material, and process efficiency. Enhancing solar panel energy generation efficiency allows for greater electricity production with fewer panels, lessening the strain on both finances and raw materials. Although solar panels typically have a long lifespan, ongoing research and innovation can also help extend their durability, reducing the need for replacements. Thoughtful design of panels and business models can facilitate easy, affordable refurbishment, further extending panel longevity.
- Increase recycling and reuse. This opportunity represents a vital aspect of the solar panel lifecycle. As the number of retired solar panels rises, so does the potential for recycling components to alleviate the pressures of raw material sourcing and waste accumulation. As the field of solar panel reuse and recycling is still in its infancy, numerous opportunities exist for private and public initiatives to drive positive change. Policies and investment geared towards a circular renewable energy economy will make the transition to clean power as responsible and sustainable as possible.
What happens at the end of a solar panel's life cycle? Currently, we are installing about 50-60 million panels annually, resulting in a significant amount of waste when these panels come to the end of their lifespan. By 2030, experts predict that we could be installing over 350 million panels each year. While this marks a significant advancement in our clean energy transition, it also raises the stakes for sustainable material sourcing and end-of-life management. How will we manage the disposal of panels after 20-30 years? Is it feasible to establish a circular solar panel supply chain?
If you are interested in discovering more about the solar panel production process, the current state of the solar panel repair and reuse industry, and how we can recycle solar panel materials to foster a less wasteful circular supply chain, explore the following links:
6 QUESTIONS TO FIND THE IDEAL SHRINK WRAPPING ...
Reducing Sawdust Waste one Briquette at a Time
If you are seeking additional information, please visit Raw Material For Solar Panel.
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