Korean firms capitalize on absence of Chinese rivals in US solar market

An illustration of a Vietnamese wafer plant that OCI Holdings will acquire / Courtesy of OCI Holdings

Korean companies are rapidly expanding their presence in the U.S. solar market as their Chinese competitors are virtually banned from sales under the Donald Trump administration.

Amid a decade of dominance by low-priced Chinese solar products in Korea, Hanwha Solutions and OCI Holdings have gradually decreased reliance on the domestic market and shifted their focus to the U.S.

OCI Holdings announced Monday it will invest $78 million to acquire a 65 percent stake in Elite Solar Power Wafer’s plant in Vietnam, which is scheduled for completion by the end of this month. The Korean firm said the acquisition aims to produce wafers that are free from “prohibited foreign entities.”

Under the U.S. One Big Beautiful Bill Act, which took effect in July, solar products that contain materials and components sourced from prohibited foreign entities, including China, are excluded from qualifying for tax incentives.

OCI Holdings emphasized the Vietnamese plant will source all of its polysilicon from OCI Terrasus, its wholly owned subsidiary, to create complete vertical integration and boost both competitiveness and profitability.

“This strategic investment brings us closer to building a supply chain that facilitates U.S. exports,” OCI Holdings Chairman Lee Woo-hyun said. “We will continue to strengthen our presence in the global solar market by fostering partnerships with local companies in Southeast Asia.”

Hanwha Solutions' solar hub is under construction in Catersville, Ga., in this undated photo. Courtesy of Hanwha Solutions

Hanwha Solutions Q Cells Division plans to finish its solar hub project in the U.S. state of Georgia by the end of this year and manufacture ingots, wafers, cells and modules at a single location. The new facility will only outsource polysilicon production to OCI Terrasus.

This strategy is aimed at benefiting from the U.S. Inflation Reduction Act and avoiding price competition with Chinese rivals in the global market.

“Once the Cartersville plant is completed at the end of this year, Hanwha Q Cells will be the only company having a fully integrated solar cell value chain in the U.S.,” a Hanwha Solutions official said.

Still, both Hanwha Solutions and OCI Holdings remain cautious given Trump’s skepticism toward renewable energy.

Earlier this month, OCI Holdings postponed its $215 million project to invest in U.S. solar cell production, citing risks arising from shifts in Washington’s policy.

“We will reconsider our investment, if there is any change in the market environment,” the company said in its Oct. 1 regulatory filing.

Hanwha Solutions is addressing concerns over Trump’s policy by hiring communications experts to promote its U.S. solar cell business. According to the U.S. Senate’s lobbying disclosure, Hanwha Q Cells USA spent $1.6 million on lobbying in the first half of this year.