The global production of solar panels is using forced labour from China's Uyghur Muslims in Xinjiang province, an investigation has found. Xinjiang produces about 45% of the world's supply of.
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Allegations have been raised before that forced labor in Xinjiang has been used to produce polysilicon, a key component for making solar panels. But this latest research indicates that the practice is also used in the mining and processing of quartz, the raw material at the very start of the solar panel supply chain.
Xinjiang will produce about half of the polysilicon in these panels, based on BNEF projections, and China will account for more than 80% of the overall supply. But consumers can’t track the provenance of their panels, since raw materials from multiple factories mix together along the solar supply chain.
China accounts for 80% of solar module production capacity after years of subsidies, driving oversupply that has triggered a collapse in global prices and provoked import duties from trading partners to stave off being swamped by low-cost equipment.
Oversupply pushed prices of finished solar panels in China down 42% in 2023, making Chinese panels more than 60% cheaper than U.S.-made equipment, with some module-only manufacturers taking orders at negative margins to preserve market share, said Wood Mackenzie analyst Huaiyan Sun.
In recent years, China has shifted its focus from centralized solar farms to smaller-scale distributed solar projects, as photovoltaic research continues to improve the technology and lower its costs.
Consolidation in China's crowded solar power sector is pushing smaller players out of the market, but excess production capacity - with more on the way - threatens to keep global prices low for years.
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