The Urgent Need for U.S. Leadership in Green Industries

The race for green technology dominance is not a distant contest—it’s unfolding right now, and the United States is trailing behind. In 2024, China’s green industry sales reached $1.9 trillion, compared to $520 billion in the U.S. This gap is more than economic; it’s about strategic influence, energy security, and climate leadership.

Picture this: a sprawling gigafactory on the outskirts of Shenzhen. Automated lines hum as robotic arms assemble battery cells at lightning speed. Forklifts glide silently, powered by the very batteries they help produce. Every hour, thousands of battery packs roll off the line, destined for markets worldwide.

This is China’s reality. Facilities like this are the backbone of an industrial strategy that has made China the world leader in solar panels, battery storage, and clean energy infrastructure. These gigafactories operate at a scale that U.S. plants—many still under construction—cannot yet match.

China’s Rapid Growth: A Wake-Up Call

China’s green industries are expanding at a pace that should alarm U.S. policymakers, as the vast majority of these technologies originated in the United States:

- 10% of China’s GDP now comes from green sectors.

- These industries contributed 26% of China’s GDP growth in 2024.

- EVs, solar, and batteries—the “new three”—account for three-quarters of the value added in this transformation.- China added 216 GW of solar capacity and 50 GW of battery storage in 2024 alone.

How Does the U.S. Compare?

Metric	China (2024)	United States (2024)
Total Green Industry Sales	$1.9 trillion	$520 billion
Share of GDP	~10%	~1.9%
Solar Capacity Added	216 GW	50 GW
Battery Storage Added	50 GW	11.3 GW

The U.S. Has an Innovation Edge

Despite lagging in scale, the U.S. leads in breakthrough technologies that could redefine global industrial technology systems if scaled quickly.  Just a few examples:

1.     Long-Duration Energy Storage (Form Energy)

a)    Iron-air batteries store energy for up to 100 hours, solving the intermittency problem of renewables.

b)    Uses abundant materials—iron, water, and air—making it cost-effective and secure from supply chain risks.

2.     Carbon Free Iron Production (Electra)

a)    is pioneering low-temperature electrochemical ironmaking, using renewable electricity instead of coal.

b)    This process eliminates carbon emissions from steel, which currently account for 7% of global CO₂.

3.     Renewable Jet Fuel (Louisiana Green Fuels)

a)    Strategic Biofuels is building a $700M plant in Louisiana to produce sustainable aviation fuel from forestry waste.

b)    The project will include carbon capture and storage, making its fuel deeply carbon-negative.

4.     Hydrogen-Electric Aviation (ZeroAvia)

a)    hydrogen-powered planes with 1,500 provisional orders already placed.

b)    Tackles hard-to-abate sectors like aviation, where emissions are stubborn.

5.     Smart Electric Agriculture (Monarch Tractor)

a)    World’s first fully electric, driver-optional tractor.

b)    Already deployed across 12 states, reducing emissions in agriculture—a sector often overlooked.

6.     Mycelium-Based Bulding Materials (Evocative)

c)     Mycelium absorbs carbon as it grows.

d)    Used for insulation panels, packaging, and even structural composites when combined with bio-based resins.

Case Study: Form Energy’s Iron-Air Batteries

Form Energy exemplifies America’s innovation advantage:

- Technology: Iron-air batteries operate through “reversible rusting”—iron reacts with oxygen to release energy, then reverses during charging.

- Performance: Stores energy for 100 hours, far beyond lithium-ion’s 4-hour limit

.- Impact: Enables a fully renewable grid by bridging multi-day gaps in solar and wind generation

.- Scaling: Opened an 800,000 sq. ft. gigafactory in West Virginia; first major project in Maine will deliver 85 MW for 100 hours—enough to power thousands of homes during peak demand.

Why This Matters

- Economic Competitiveness: Scaling these innovations can create new industries and jobs.

- Energy Security: Reduces reliance on foreign supply chains.

- Climate Leadership: Positions the U.S. as a global standard-setter in next-gen clean tech.

What the U.S. Must Do—Now

Double Down on Strengths:

Accelerate deployment of technologies like iron-air batteries, green ironmaking, SAF, and mycelium materials

Invest in Grid Modernization: Support large-scale energy storage and transmission upgrades.

Foster Innovation: Expand R&D funding for breakthrough technologies.

Scale Workforce Development: Train workers for clean tech jobs to ensure competitiveness.

Protect its lead where it has one: Use tariffs and supply chain agreements to protect emerging U.S. technologies from foreign dumping.

The Bottom Line

The U.S. cannot win by copying China’s scale in existing technologies—it must lead through innovation. Companies like Form Energy, Electra, Strategic Biofuels, Ecovative, and Zero Avia show what’s possible. The challenge now is speed: scaling these breakthroughs before China closes the innovation gap yet again.