Canadian Solar says it will regain direct control of its US operations as it expands PV manufacturing reshoring efforts
A new company called CS PowerTech, with Canadian Solar as the majority stakeholder, will handle US production of solar modules, cells, and storage systems
The initiative aims to reduce risks and strengthen its supply chain to align with US laws and regulations
Canadian Solar has announced that it will take back direct control of its US operations while expanding efforts to bring more manufacturing to North America. The company plans new joint ventures with US partners and its subsidiary, CSI Solar, as part of a broader reshoring strategy to the US as part of the efforts to de-risk its operations.
Ahead of the anticipated Foreign Entities of Concern (FEOC) guidance in the US, Canada-headquartered Canadian Solar said it will hold a 75.1% stake in a new company, CS PowerTech, which will handle US production and sales of solar modules, solar cells, and energy storage systems.
It will also acquire a 75.1% stake in certain overseas facilities run by CSI Solar that support US operations, for about $50 million. In a stock exchange announcement, CSI Solar revealed that the equity transfer involves 8 GW of overseas PV wafer slicing factory, which is already in production but currently idle. Another 2.9 GW overseas solar cell factory and 3 GWh overseas energy storage factory, which are currently under construction, will be part of its 2 joint ventures (JV) with Canadian Solar.
CSI Solar says the move will reduce business risks and protect investors' interests as Canadian Solar adjusts its US market operations in response to changes in US laws and regulations.
Following the transaction, Canadian Solar will focus on the production, sales, and service of PV modules and energy storage systems (ESS) in the US market, as well as developing client relationships with US public utilities, power companies, and the large industrial and commercial segment.
CSI Solar will then focus on its module, ESS, and system integration business in non-US regions, including Europe, Asia, Latin America, and the Middle East.
As it increases its North American presence, Canadian Solar says it will continue forming additional joint ventures with American companies across the solar, storage, and power sectors. The initiative is expected to create thousands of high-quality US manufacturing jobs and deliver new investment and clean energy benefits to local communities, it adds.
“Launching CS PowerTech and resuming manufacturing directly under the publicly traded parent company reflects Canadian Solar's commitment to its North American homebase and to building a resilient, transparent, and diversified domestic supply chain,” stated Canadian Solar.
Anticipating the US government guidance regarding FEOC, US solar PV manufacturer First Solar is also onshoring its international manufacturing operations (see First Solar’s 3.5 GW Louisiana Solar Module Fab Online).
