Hanwha to invest $2.5 billion to build North America's biggest solar module plant

The Korea Times

The Korea Times

Business

Sat, September 23, 2023 | 12:45

Hanwha to invest $2.5 billion to build North America's biggest solar module plant

Posted : 2023-01-11 16:53

Updated : 2023-01-12 11:45

Hanwha Solutions Q Cells Division CEO Lee Koo-yung speaks during a press conference at the company's head office in Seoul, Wednesday. Courtesy of Hanwha Solutions

By Park Jae-hyuk

Hanwha Solutions held a press conference, Wednesday, to unveil its plan to invest a combined 3.2 trillion won ($2.5 billion) by the end of next year in the construction of North America's largest solar module manufacturing complex in Georgia and the expansion of its Dalton module factory in the southeastern state.

The size of the investment is the largest ever in the U.S. solar energy industry's history. This is also the first time in North America for a single module manufacturer to house all of the production lines that integrate the overall value chain.

The company said its large-scale investment is intended to comply with the U.S. Inflation Reduction Act (IRA) and consolidate its leading status in the U.S. market. Under the new law, companies that manufacture products for solar power generation in the U.S. can enjoy various benefits from the U.S. government, including tax credits.

"We made the decision to take advantage of the U.S. government's energy transition policies to maximize our competitiveness," Hanwha Solutions Q Cells Division CEO Lee Koo-yung said.

With the aim of mass production by the end of next year, Hanwha Solutions will invest 3 trillion won to build an integrated manufacturing complex in Cartersville, which will produce ingots, wafers, cells and modules. Regarding polysilicon, the company is considering using the key material made by REC Silicon in the state of Washington, which was acquired by the Korean firm last year.

The annual production capacity of its Dalton factory, which started mass production of the module in 2019, will be expanded to 5.1 gigawatts by the end of this year from the current 1.7 gigawatts.

Hanwha Solutions aims to increase its annual module production capacity to as high as 8.4 gigawatts ― the largest among the companies that produce silicon battery-based modules in North America. The company emphasized that the wattage is large enough for 1.3 million U.S. households to consume electricity for a year.

"Our Solar Hub connecting Dalton and Cartersville will be North America's largest solar module manufacturing complex," Lee said.

He added that once Hanwha Solutions builds the complex in the U.S., it will establish an R&D facility there, although the company's planned 3.2 trillion won investment will not be used for R&D.

In response to concerns over financial soundness, Hanwha Solutions said it holds enough cash and cashable assets for the projects. The company also said tax credits from the U.S. government will enable it to complete the projects with only a small amount in loans.

"The state government also offered various incentives, such as reduced taxes, cash grants, discounts on factory sites and financial support for employment," Lee said.

The press conference was held a day after the Atlanta Journal Constitution (AJC) reported that the Korean firm would announce an expansion in Dalton plus a massive new plant northwest of Atlanta.

Although Hanwha Solutions did not mention how many jobs would be created at the press conference, the AJC expected the projects collectively to bring around 2,600 jobs to the state, citing two people with knowledge of the company's plans.

pjh@koreatimes.co.kr