The solar company is tapping into the booming American solar market via a 2 GW factory in Ethiopia and another planned facility in the U.S.
(A rendering of TOYO’s new 2-gigawatt capacity solar module facility in Ethiopia. Courtesy: TOYO)
Japanese solar manufacturer TOYO Co., Ltd. (TOYO) has unveiled plans to establish a 2 GW state-of-the-art solar cell manufacturing facility, this one strategically located in Hawassa, Ethiopia to take advantage of the country’s ample hydropower supply.
The company has signed a lease agreement for the 31,500 m2 facility, which takes advantage of Ethiopia’s ample hydropower supply, favorable investment policies, and tariff status. Of note, Ethiopia is not among the countries whose solar exports are currently subject to increased tariffs or being scrutinized in anti-dumping and countervailing duties investigations. Ethiopia is exempt from tariffs for bifacial solar cells under Section 201 of the Trade Act of 1974 of the U.S.
That project represents an estimated investment of $60 million and will be financed using internal resources and pre-payments, according to TOYO, which expects to begin fitting out the new plant in November 2024. The new factory is anticipated to start production at the end of the first quarter of 2025. Once complete, TOYO estimates the new facility will create up to 880 jobs, including manufacturing and engineering.
“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 Mr. Junsei Ryu, CEO of TOYO.
About 90% of Ethiopia’s electricity generation comes from hydropower and 8% comes from wind. An ample supply of renewable energy will help TOYO reduce its carbon footprint across its supply chain.
“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,” added TOYO’s CEO.
Originally published in Renewable Energy World.