TOYO plans $357 million solar cell facility in Houston area

TOYO Co., Ltd. (NASDAQ: TOYO) announced plans to build a 1.5 gigawatt heterojunction solar cell manufacturing facility in the Houston metropolitan area with a projected investment of $357 million.

The facility will be co-located with the company's existing solar module site in Texas and is expected to create approximately 400 direct manufacturing jobs. The company projects completion within 20 months, with engineering and procurement planning already underway.

The expansion represents TOYO's entry into domestic cell manufacturing as part of its strategy to create an integrated U.S. solar supply chain. The facility will produce heterojunction cells, which the company states deliver enhanced conversion efficiencies compared to conventional solar technologies.

"Expanding into domestic cell manufacturing is the natural next step in our commitment to creating an integrated onshore solar supply chain from polysilicon to panels," said Takahiko Onozuka, Chairman and Chief Executive Officer of TOYO.

TOYO plans to fund the expansion through internal cash flow, project financing, and potential strategic partnerships. The company indicated the facility will help meet domestic content requirements and Foreign Entity of Concern compliance standards in the U.S. solar market.

Under current U.S. framework guidelines, domestic cell manufacturing qualifies for Advanced Manufacturing Production Credits under Section 45X of the Inflation Reduction Act, providing $0.04 per watt for domestically produced solar cells. At full capacity, this represents a potential annual benefit of up to $60 million in production tax credits, according to the company.

The information is based on a company press release statement.

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