European-Chinese Consortium Plans German PV Fab

• Herbert Diess has announced JA Solar of China as the manufacturing partner for German solar manufacturing
• The duo plans to build a module factory in Germany; May expand to Spain and Hungary as well
• Fraunhofer ISE is being roped in to provide technological support to the JV

Herbert Diess, the former CEO of German automobile giant Volkswagen (VW), has picked Chinese solar PV manufacturer JA Solar to build a solar module factory in Germany under a joint venture (JV).

Speaking to German weekly news magazine Der Spiegel, Diess revealed that the plan is to form a consortium in which the European side will be the majority owner. JA Solar will be the largest individual shareholder in the new company.

Germany will also be the technical headquarters for the consortium. Spain and Hungary are also on the list of other international locations the duo plans to explore.

Diess said the partnership has already submitted an application for funding to secure start-up capital, possibly referring to Germany's 10 GW tender for solar PV manufacturing to support lighthouse projects (see Germany Launches Big Solar PV Industry Tender). Diess bets on China's superior manufacturing expertise and cost advantage, while several other European companies and joint ventures have participated in this tender – among others, Europe's current cell/module manufacturer Meyer Burger, which is targeting a 5 GW fab, and a German consortium made of module maker Heckert, distributor Wattkraft and glass maker Interfloat (see Solar Manufacturing Consortium In Germany).

German solar research institute Fraunhofer Institute for Solar Systems ISE (Fraunhofer ISE) is also being roped in to provide support and guidance to implement the latest European solar production technology.

Diess said the plan is for the factory to enable European solar industry to catch up with China again and reach the top via technological innovation. "The solar industry will be bigger than the global auto industry by 2035," Diess said. Adding, for this reason it makes sense to "participate in this value creation."

Interestingly, he was speaking about the project during one of the world's largest car shows, IAA in Munich, where many Chinese car manufacturers are presenting their EVs as they try to foray into Europe, while leading German car companies, despite this new and dangerous competition, are deepening and expanding their ties with Chinese car companies. VW, for example, develops with Chinese EV producer XPeng now common cars based on Chinese technology.

Having worked with BMW Group and VW in the past, Diess is currently the chairman of the Supervisory Board of German semiconductor manufacturer Infineon Technologies.

One of the globally leading vertically integrated solar manufacturers from China, JA Solar is expanding its geographic footprint to the US with a 2 GW fab in Arizona (see JA Solar Takes US Solar Module Manufacturing Steps).