TOYO Solar has announced plans to produce solar modules, cells and silicon wafers in the US
It will start with solar modules with 2 GW annual production capacity for which it is scouting a suitable location
The IRA incentives will help it recoup around $100 million it plans to invest in US production
Japanese solar PV manufacturer TOYO Solar has unveiled plans to establish a solar cell and module manufacturing plant in the US with 2 GW of annual production capacity each. It will also venture into wafer-slicing in the US in the future.
The company plans to raise $100 million for the project that it expects to ‘quickly recoup’ due to the Inflation Reduction Act (IRA).
Within the 1st 12 months after pilot production, it expects to produce 1.4 GW of PV modules for $0.6/W profit, leading to around $84 million return. Under the IRA, the US offers an incentive of $0.07/W for solar modules, $0.04/W for solar cells, and $12/sq. m. for solar wafers.
These policy benefits, it believes, enable a 70% return in the initial 12 months after pilot production.
TOYO is currently scouting for a suitable location for its module fab from where it will manufacture and supply PV modules initially, in collaboration with its affiliate Vietnam Sunergy Joint Stock Company (VSUN), leveraging its certification and brand name. Once it obtains the requisite certifications, the plan is to independently manufacture and supply PV modules under TOYO Solar brand name.
Construction on the planned US module facility is expected to begin in Q4 2024, and production to commence in mid-2025. Solar cell production in the US is expected to begin in H1 2026.
In its financial results for H1 2024, TOYO said due to the US trade investigations into Southeast Asian solar manufacturers, which included its Vietnam manufacturing facility, along with its major clients, it has decided to lower shipment volumes. The reduced shipments will continue till the US releases its preliminary investigation results.
“The expiration of the two-year tariff exemption period at the beginning of June, combined with the probe into anti-dumping and countervailing duties by the U.S. Department of Commerce and International Trade Commission, have injected near-term uncertainty into pricing and demand for advanced solar products from the U.S., TOYO's primary market,” said TOYO Chairman and CEO Junsei Ryu.
Fearing the measures to impact its business, TOYO has contemplated US manufacturing. Ryu added, “To address this situation, we are accelerating plans to build out our US manufacturing presence while increasing shipments to customers based in India, the Middle East, and other markets. Our strategy to build an integrated value chain in North America serving our US customers remains unchanged, and we will continue to observe and adapt to dynamic industry conditions.”
To discuss solar PV manufacturing in the US, TaiyangNews has partnered with EUPD Research and RE+ to host a 1-day conference on Solar Made In USA How to manufacture solar wafers, cells & modules competitively in the United States. Register for the event scheduled for September 9, 2024 here.