South Korea's Hanwha Solutions has announced a massive scale up of its US solar PV production plans aiming for a cumulative 8.4 GW module manufacturing capacity by 2024-end with an integrated production complex, calling it the 'largest' investment in the history of US solar energy industry.
To make sense of this announcement, here's what Hanwha Q Cells is currently doing and plans to do. It already operates a 1.7 GW solar module fab in Dalton, Georgia. With the addition of 1.4 GW fab nearby that's planned to come online in H1/2023, and an additional 2.0 GW to be commissioned later this year, its total module manufacturing capacity by 2023-end is planned to increase to 5.1 GW.
It has also announced plans to build 'an integrated production complex for ingots, wafers, cells, and modules each with a capacity of 3.3 GW, with the goal of commercial production at the end of next year' for an investment of KRW 3.2 trillion ($2.5 billion). Once all of this capacity is online, Hanwha will boast 8.4 GW solar PV production capacity in the US.
"The establishment of a solar hub is to maximize competitiveness by making full use of the US government's energy conversion policy," said Hanwha Solutions Q Cells CEO Lee Gu-young while referring to the Inflation Reduction Act (IRA). He added, "Solar Hub will become a key production base for the US solar industry, which is expected to grow rapidly by around 20% every year."
Management has excluded only polysilicon production from these plans and says the company is 'reviewing the introduction of polysilicon made by REC Silicon' in which the Korean company is a stakeholder. REC Silicon has acquired a stake in the solar hub production line. By 2023-end, REC Silicon targets to mass produce 16,000 tons of polysilicon annually that Hanwha says will suffice the production of about 5.3 GW solar cells. (see Qcells Picks Georgia For 1.4 GW US Module Fab).
Decision to locate the Solar Hub in Georgia is to enjoy locational advantage to easily operate logistics and recruit employees.
"Hanwha Solutions will become the only company in North America equipped with all five-step value chain production lines, from polysilicon, the basic material, to modules, the finished product, when the solar hub starts operating in earnest from next year. This is why we expect to be able to solidify our No. 1 position in the local market through the sale of 'Made in America' solar products produced locally in the US, from raw materials to finished products," stated Hanwha.
The IRA has prompted several announcements for local solar PV production in the US from national and international players as the country is expected to generate huge demand for solar in the decade to come. The American Clean Power Association (ACP) counted as much as 22 GW new solar cell or module manufacturing capacity announced since August 16, 2022 (see US Attracts $40 Billion Clean Energy Investments In 3 Months).
According to local business journal Business Korea, Hanwha operates 4.5 GW solar module production capacity in South Korea and another 6.2 GW in Malaysia and China.
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