Solar Industry Exposed to Forced Labor in China: Report

Construction workers install solar panels at Hami Solar Power Station in Hami, China's Xinjiang region, on Aug. 22, 2011. VCG/VCG via Getty Images

Many solar companies continue to directly or indirectly source materials from Xinjiang despite the region being known for human rights abuses like forced labor.

The solar industry has come under criticism for its ties with Xinjiang, a critical supplier of polysilicon, the material used in manufacturing solar panels. The region is estimated to account for almost a third of global polysilicon output as well as the production of metallurgical-grade silicon that is used to make polysilicon.

In recent years, organized labor groups have called on the Biden administration to block solar products from Xinjiang over human rights concerns. However, the vast majority of solar modules produced globally “continues to have exposure to the Uyghur Region,” according to a report released on Tuesday by England’s Sheffield Hallam University (SHU).

“Production in China significantly increases exposure,” it said. “Some of the world’s largest module manufacturers appear to have bifurcated their supply chains to create a product line that they claim to be free of XUAR (Xinjiang) inputs, though evidence of these claims varies by supplier.

“Most companies have suggested that these supply chains are dedicated to the US market or designed with UFLPA compliance in mind,” it said, referring to the U.S. Uyghur Forced Labor Prevention Act (UFLPA).

“The portion of modules made by China-based companies on these dedicated supply chains appears to range from 7–14 percent of the companies’ total production capacity globally.”

The SHU report points out that “companies that have created supply chains purportedly free of XUAR [Xinjiang Uyghur Autonomous Region] inputs continue to source from suppliers or sub-suppliers that have exposure to the Uyghur Region for other product lines.”

In its assessment, the report looked at the top five solar panel manufacturers in the world as well as some of the smaller brands.

Out of the 10 solar manufacturers assessed in the report, most of them had a “high” or “very high” risk of exposure to Xinjiang inputs.

JA Solar, LONGi Solar, Maxeon Solar Technologies, Qcells, REC Group, and Trina Solar had operations with a “very high” risk of exposure. Canadian Solar, Jinko Solar, and Tongwei Solar had a “high” operational rating.

UFLPA was signed by President Joe Biden in December 2021 and came into effect in June 2022. According to the Act, all goods produced in Xinjiang, whether in whole or in part, are prohibited from being imported into the United States unless the importers receive an exception.

Since the Act came into effect, roughly half the shipments held back for inspection by the U.S. Customs and Border Protection (CBP) under UFPLA have been solar panels and related components, as of January 2023.

Transparency Issue, Company Responses

The SHU report pointed to the lack of transparency in determining whether a product line contained an item linked to Xinjiang.

“It is sometimes impossible to determine if it is indeed the case that these dedicated product lines are XUAR-input-free because companies do not disclose sufficient supply chain information,” it said.

“Despite significant global pressure for increased transparency, information regarding solar industry sourcing is becoming less transparent over time, thwarting the world’s ability to source ethically.”

In their response to the report, some companies stated that their supply chains are free from Xinjiang inputs, while some skirted the issue. Certain firms also insisted that there were errors in the supply chain data used in the report.

Jinko Solar said it has “zero tolerance for the use of forced labor and extends the same criteria to its suppliers.” In May, the company announced the sale of its equity interest in an operation in Xinjiang.

LONGi Solar said the firm has “always complied and will always comply with the applicable laws and business ethics in jurisdictions it operates in.”

Maxeon said that the solar panels manufactured by the company “contain polysilicon made in several countries outside of China with zero Chinese upstream materials.”

Tongwei Solar said it adheres to the “utmost integrity in operating our business and strictly complies with all applicable laws and regulations in both China and each country/region where we have operations.”

Removing Forced Labor From Supply Chain

The solar industry in the United States has been taking action against the issue of forced labor. In February, over 340 companies signed a pledge (pdf) by the Solar Energy Industries Association (SEIA) to ensure that “the solar supply chain is free of forced labor and raising awareness within the industry on this important issue.”

SEIA has developed the Solar Supply Chain Traceability Protocol, a set of recommendations that can be used to identify and trace the movement of inputs throughout the supply chain.

“By implementing the key principles of the Protocol, companies are better able to meet their U.S. import compliance obligations and provide customers supply chain transparency,” it said.

Meanwhile, a recent report by a nonprofit research firm put a spotlight on the carbon intensity of manufacturing solar cells in China.

The report from Environmental Progress claims that Chinese-made solar panels output roughly three times the carbon emissions during their production than what has been claimed by the Intergovernmental Panel on Climate Change (IPCC).