Carbon fibers (CFs) are considered promising composite materials for various applications. However, the high cost of CFs (as much as $26 per kg) limits their practical use in the automobile and energy industries. In this study, we developed a continuous stabilization process for manufacturing low-cost CFs. We employed a textile-grade polyacrylonitrile (PAN) fiber as a low-cost precursor and UV irradiation technique to shorten the thermal stabilization time. We confirmed that UV irradiation on the textile-grade PAN fibers could lower the initial thermal stabilization temperature and also lead to a higher reaction. These resulted in a shorter overall stabilization time and enhancement of the tensile properties of textilegrade PAN-based CFs. Our study found that only 70 min of stabilization time with UV irradiation was required to prepare textile-grade PAN-based low-cost CFs with a tensile strength of 2.37 ± 0.22GPa and tensile modulus of 249 ± 5 GPa.