Critical minerals value chains – Solar photovoltaic (PV) modules
Solar PV modules, commonly known as solar panels, are essential for a clean and digital economy. The development of solar PV modules relies on the increased supply of responsibly sourced critical minerals, making this value chain a priority under the Canadian Critical Minerals Strategy.
Why are solar PV modules important for Canada?
Solar energy is a renewable and limitless source of power. Since it can generate electricity without emitting greenhouse gases during operation, it is becoming a larger part of Canada’s energy mix as we move towards a net-zero emissions future.
According to the Canada Energy Regulator, Canada’s solar power generation is projected to grow from 2.5 terawatt-hours (TWh) in 2021 to 50 TWh by 2050. Small solar panel installations on homes and buildings, along with large utility-scale arrays, are expected to become more common. According to the International Energy Agency (IEA), installed solar capacity will triple between 2022 and 2027 globally. The projected growth in demand for solar panels in Canada and worldwide represents a significant opportunity for domestic industrial development.
Understanding the solar PV modules value chain
Modules made of crystalline silicon (c-Si) are the most popular type of solar panels, accounting for 95% of the global market. The c-SI supply chain process includes:
- lamination between polymer encapsulants, glass and back sheet materials set within an aluminum frame
- wiring and assembling using copper and bismuth
Both copper and bismuth, along with aluminum, are identified as critical minerals in Canada.
Thin-film and other lesser-used solar technologies make up the remaining 5% of the global market. Technologies made of cadmium telluride (CdTe) are the most popular of these alternative technologies. The CdTe supply chain process is defined as follows:
- refining cadmium and tellurium into high-purity powders
- depositing on glass sheets
- laser scribing the cells
- encapsulating the cells
Tellurium is identified as a critical mineral in Canada.
Global market snapshot
According to the IEA, global solar PV energy generation grew by 26% from 2021 to 2022. Energy from installed solar capacity is expected to be greater than that of coal by 2027.
According to estimates from the United States Geological Survey (USGS), producers of the critical minerals used in the production of PV modules include:
- cadmium – China, South Korea, Japan and Canada
- tellurium – China, Japan, Russia, Canada and Uzbekistan
- copper – Chile, Peru, Congo and China
- aluminum – China, India, Russia and Canada
Manufacturing of the dominant c-Si solar technology, at all stages, is highly concentrated in China. Manufacturing of thin-film technologies, including CdTe, is mostly divided between the United States, Malaysia and Vietnam.
The Canadian advantage
Canada’s mineral wealth presents opportunities to support the development and production of solar PV modules. Canada is the world’s fourth-largest producer of aluminum and a major copper producer. Canada is also among the top global producers of indium — a critical mineral used in some solar PV technologies.
Canada currently produces high-purity minerals and compounds as feedstock for the global CdTe supply chain. According to the USGS, in 2022, Canada produced:
- 1,800 tonnes of cadmium
- 50 tonnes of tellurium
- zinc and related compounds
Canada does not currently produce polysilicon. Canada has a handful of c-Si solar PV module manufacturers, but none that produces CdTe modules. Canadian companies also manufacture installation components, including racks, mounts and wires, as well as inverters.