Carbon Fiber Manufacturing Facility Siting and Policy Considerations: International Comparison

Carbon fiber is increasingly used in a wide variety of applications due largely to its superior material properties such as high strength-to-weight ratio. The current global carbon fiber manufacturing industry is predominately located in China, Europe, Japan, and the United States. The carbon fiber market is expected to expand significantly through 2024 and to require additional manufacturing capacity to meet demand. Carbon fiber manufacturing facilities can offer significant economic development and employment opportunities as exemplified by the $1 billion investment and 500 jobs expected at a new Toray plant in Moore, South Carolina. Though the market is expected to expand, it is unclear where new manufacturing facilities will locate to meet demand. This uncertainty stems from the lack of research evaluating how different nations with significant carbon fiber manufacturing capacity compare as it relates to certain manufacturing facility siting factors such as costs of labor and energy as well as policy directed at supporting carbon fiber development, domestic deployment, and exports. This report fills these gaps by evaluating the top carbon fiber manufacturing countries, including China, European Union countries, Japan, Mexico, South Korea, Taiwan, and the United States. The report documents how the United States compares to these countries based on a range of manufacturing siting considerations and existing policies related to carbon fiber. It concludes with a discussion of various policy options the United States could adopt to both (1) increase the competitiveness of the United States as it relates to attracting new carbon fiber manufacturing and (2) foster broader end-use markets for deployment.