In 2025, Beijing’s strategic location in renewable technology and vital minerals has taken center stage in international affairs, especially in respect to its relations with the Gulf Cooperation Council (GCC) nations. Energy diplomacy, economic diversification initiatives, and the worldwide competition for technological leadership in the clean energy sector are all being reshaped by the dynamic interaction between China and the GCC states.
China has established itself as a crucial participant in the global energy revolution by refining most rare earth elements (REEs), as well as other vital battery metals like cobalt, nickel, and lithium. Its vertically integrated supply chains guarantee that Chinese companies produce the parts and finished goods needed for clean energy technology, in addition to extracting and processing these minerals.
With 57 percent of the world’s EV manufacturing, 71 percent of battery cells, and 65 percent of battery components, China has significant influence over the price, supply stability, and technological developments of the global clean energy market.
China’s Role in the GCC’s Renewable Energy Expansion
Benefits from the China-GCC energy partnership flow both ways. By supplying state-of-the-art technology, capital, and infrastructure development to the nations of the Gulf, Chinese businesses are significantly contributing to the GCC’s renewable energy shift. By 2027, Trina Solar, one of China’s top solar energy companies, plans to build the world’s largest photovoltaic plant in the United Arab Emirates, reaffirming China’s position as a key collaborator in the growth of solar energy in the Gulf region.
As seen by the high rise in lithium battery shipments to the GCC—which rose by 26 percent between 2021 and 2022 and nearly doubled in the first three quarters of 2023—China’s impact goes beyond solar power to energy storage solutions. In line with their long-term sustainability objectives, this trend shows the GCC’s growing use of energy storage devices and electric mobility options.
In line with their long-term sustainability objectives, the GCC states see collaboration with China as a crucial part of their economic diversification plans and initiatives to lessen reliance on oil. GCC leaders have reasoned that their ambitious clean energy goals—notably Saudi Arabia’s Vision 2030 and the UAE’s Net Zero by 2050 effort—can be enhanced by China’s enormous manufacturing capacity in renewable energy technology, such as solar panels, wind turbines, and battery storage.
Chinese companies are desirable partners for major energy projects in the area because they provide cutting-edge technologies at extremely affordable costs, thanks to economies of scale and overcapacity in their home renewable energy sector. Through this synergy, China finds new markets for its excess output and the GCC accelerates its energy transition, creating a win-win cooperation that transforms the energy landscape of the region.
Source: [Extract from] AzerNews, March 11 2025. See full article at following link – https://www.azernews.az/analysis/238725.html
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