TOYO plans solar cell production in Ethiopia to better serve U.S. market
Japan’s TOYO Co. has plans to expand beyond Southeast Asia and produce tariff-free solar cells and modules to serve the U.S. market.
In September, TOYO unveiled plans to open a 2 GW solar module manufacturing plant in the United States (production estimated by mid-2025), with cells (2026) and wafers to follow down the road. This week, TOYO Co. announced plans to establish 2-GWs of annual solar cell manufacturing capacity capacity in Ethiopia, taking advantage of the country’s favorable investment policies, tariff status, and ample hydropower supply.
“We are thrilled to embark on this ambitious project, which will enable us to rapidly scale up solar cell production to meet the needs of our planned module facility in the United States. Establishing this manufacturing plant is a key step in our strategic vision to diversify our supply chain and enhance our sourcing capabilities for solar solutions in the global market,” said Junsei Ryu, CEO of TOYO.
Ethiopia solar manufacturing
The project represents an estimated investment of $60 million and will be financed using internal resources and pre-payments. TOYO expects to begin fitting out the new plant in November 2024, with the new factory anticipated to start production at the end of the first quarter of 2025.
“Approximately 90% of Ethiopia’s electricity generation comes from hydropower, with wind contributing 8% and thermal sources accounting for the remaining 2%. The new facility will be able to take advantage of this green power supply to advancing TOYO’s goal of reducing the carbon footprint across our supply chain as this issue becomes increasingly important to utility-scale developers in the U.S., Europe, and other markets. This facility will enhance our production capabilities and increase efficiency, reduce costs, and respond more swiftly to market demands, positioning TOYO as a competitive key player in the renewable energy sector.”
TOYO at a glance
Toyo Solar makes TOPCon solar cells, and says it owns one of the largest, non-Chinese N-type cell manufacturing bases in the world. It began manufacturing at its Vietnam facility in 2023 and has delivered 1.3 GW of solar cells to date. In the first six months of 2024, Toyo Solar had 3 GW of manufacturing capacity, shipped 986 MW of solar cells.
The company went public in the United States following the combination of Vietnam Sunergy Cell Co., a wholly owned subsidiary of Toyo, and Blue World Acquisition Corp. Toyo Solar said it plans to integrate the VSUN brand into its own brand once mass production begins at its US facility.
Comments are closed here.