New Plant to Focus on 2 GW Solar Module Capacity, Solar Cell and Wafer Production Planned
Japanese solar PV manufacturer Toyo Solar has announced plans to establish a new solar module manufacturing plant in the United States, with an initial production capacity of 2 GW annually. In addition to solar modules, the company has plans to expand into the production of solar cells and silicon wafers in the future. Currently, Toyo Solar is scouting for a suitable location to begin construction. The company will initially collaborate with its affiliate, Vietnam Sunergy Joint Stock Company (VSUN), to leverage existing certifications and brand recognition, before transitioning to independent production under the Toyo Solar brand.
Inflation Reduction Act to Support $100 Million Investment
Toyo Solar aims to raise $100 million for the project, and the company expects to recover the investment quickly thanks to incentives provided by the Inflation Reduction Act (IRA). These incentives include $0.07 per watt for solar modules, $0.04 per watt for solar cells, and $12 per square meter for silicon wafers. The company anticipates a 70% return within the first 12 months of pilot production, targeting a production capacity of 1.4 GW of PV modules during that period, with an estimated profit of $0.6 per watt, leading to a projected $84 million in returns.
Expansion Plans Amid Industry Uncertainty
Toyo Solar’s move to establish a US-based manufacturing plant is partly driven by the current trade environment. In its H1 2024 financial report, the company highlighted the impact of ongoing US trade investigations into Southeast Asian solar manufacturers, which included Toyo’s facility in Vietnam. Chairman and CEO Junsei Ryu noted that the expiration of the two-year tariff exemption in June 2024, coupled with anti-dumping and countervailing duty probes, has created pricing and demand uncertainty in the US market. To address these challenges, Toyo Solar is accelerating its US manufacturing plans while diversifying its shipments to markets in India, the Middle East, and other regions.
Construction on the new US facility is expected to commence in Q4 2024, with solar module production starting by mid-2025 and solar cell production expected to follow in H1 2026.
