Photo: Trina Solar
Trina Solar has sold its Texas solar panel factory as the United States uses tax breaks from the Inflation Control Act to closely monitor Chinese companies.
December 30, 2024: FREYR announced on December 24 that it has completed the acquisition of Trina Solar’s 5 gigawatt (GW), 1.35 million square foot solar panel factory in Willmar, Texas. The acquisition completes FREYR’s transformation from a European battery company to a U.S. solar power generation company.
November 8, 2024: FREYR, which was founded in Norway and moved its headquarters to Georgia, paid $340 million for a factory in Trina. According to a report from Bloomberg, Trina will retain a minority ownership stake in FREYR. The plant is expected to reach full production by 2025, with firm contracts already securing 30% of estimated production for U.S. customers.
The companies announced the acquisition on November 6, the same day Kamala Harris conceded the US presidential election to Donald Trump and just a week after Trina opened its factory. . On July 31, senators introduced S.4873, a bipartisan bill aimed at blocking U.S. tax credits from Chinese companies aimed at boosting U.S. solar power production. Chinese companies are expected to face even tougher trade restrictions under the Trump administration.
Electrek reported in August 2023 that Changzhou-based Trina Solar was one of five Chinese solar panel manufacturers hit with tariff sanctions by the U.S. Department of Commerce (DOC). Ta. The DOC ruled that the companies were avoiding U.S. tariffs on products made in China by processing them. Before solar products can be shipped to the United States, components must be manufactured in Southeast Asian countries.
Daniel Barceló, FREYR’s newly appointed CEO, said: Domestic solar power and battery manufacturing capacity is essential to the energy transition and job creation. ” According to Bloomberg, Barceló said in an interview that he was confident that the newly acquired factory would qualify for the IRA’s manufacturing tax credit.
Earlier this week, Politico reported on the Inflation Control Act’s 45x tax credit:
The 45x tax credit is paid to factory owners based on each component produced. For example, solar modules can receive 7 cents per watt, or $70,000 per megawatt, but payments will decrease starting in 2029.
Trina’s 5,000-megawatt Texas plant could generate $1.775 billion from 2025 to 2032 if it operates at 78% capacity, according to Antoine Vagnour-Jones, head of trade and supply chain at BloombergNEF. will receive. At 60% occupancy, Trina could earn more than $1 billion in profit, he said.
FREYR says its next step is to build a 5GW solar factory in the United States, and site selection has already begun. The company plans to begin construction in the second quarter of 2025, with initial production scheduled for the second half of 2026. This new U.S.-owned and operated solar factory will solve a major bottleneck for developers, create up to 1,800 direct jobs, and meet local content requirements for U.S. solar projects.
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