Cost, Supply Chain, and Manufacturing Competitiveness Issues Related to SiC-Based Variable Frequency Drives for Industrial Motor Applications

A significant fraction of industrial energy use is attributable to motor-driven systems. The use of silicon carbide (SiC) in industrial motor drives can improve efficiency and, in certain applications footprint, balance-of-system cost, and other performance metrics compared to systems using traditional silicon (Si) devices. However, adoption of these drives is currently low. Barriers to adoption include the conservative nature of the market, a lack of public sources quantifying the value proposition of technology, and supply chain issues. We present a regional bottom-up cost analysis of SiC-based power modules and variable frequency drives, as well as an analysis of the global supply chain and current status of manufacturing. These results highlight possible opportunities and challenges for potential adopters of this technology, manufacturers currently in the SiC power electronics space or looking to expand into it, and policymakers seeking to understand how to increase the adoption of these energy-efficient systems or influence where they are manufactured.