First Solar, a manufacturer of PV modules and a PV project developer from the US, announced recently that it will invest US$680 million to add 3.3GW of production capacity in its home country. This capacity expansion initiative mainly involves setting up a new manufacturing plant in the state of Ohio. The plant will be the company’s third in the US.
The proposed plant in Ohio is currently scheduled for operation in the first half of 2023. Its production capacity is expected to surpass 3GW by the end of that same year. First Solar boasts that this plant will become the largest vertically integrated manufacturing hub for PV products outside China. However, its press release on this capital investment plan also suggests that much of the progress on building the new plant will depend on obtaining approvals and incentives from the state and local governments.
First Solar’s production capacity is currently distributed across the US, Malaysia, and Vietnam. The production capacities of the first two plants in the US are around 600MW and 1.8GW respectively. Both plants are located in Perrysburg, a city in the northwestern part of Ohio. The proposed third plant, too, will be built in the same vicinity. Once the new plant is up and running, First Solar’s production capacity in the US will reach almost 6GW.
Commenting on First Solar’s latest move, Jennifer Granholm, US Energy Secretary, said that the company’s investments in the US align with her government’s strategy of forming domestic supply chains for critical industries. Granholm also noted that First Solar has been participating in the government’s solar energy program since 2003 and became a loan guarantee recipient of the US Department of Energy in 2012.
She further praised First Solar as an example of American companies creating “clean energy future right here at home” through innovations and investments. Moreover, its activities are improving the competitiveness of the US and creating decent paying jobs across the country.
First Solar is the only PV product manufacturer in North America that does not use c-Si cells in the manufacturing of PV modules. The PV technology that it has been focusing on is thin-film CdTe cells. The advantages of thin-film cells are flexibility, lightness in weight, diversity in applications (e.g., building-integrated PV), and low production cost. The technology has been deployed at some major PV projects around the world. However, CdTe cells contain highly toxic materials, so recycling them at the end-of-life stage is a very challenging issue that hinders their market penetration.
Mark Widmar, CEO of First Solar, said that his company supports the Biden Administration’s plan to simultaneously transition to clean energy and achieve energy self-sufficiency. By investing to double its production capacity at home, First Solar is demonstrating its commitment. Widmar also pointed out that the proposed third plant is going to represent a huge advancement in the manufacturing of PV products as it is a “true factory of the future”. With advanced processing and production management solutions, the proposed new plant will manufacture PV modules that tick all the boxes with respect to conversion efficiency, wattage output, form factor, and cost competitiveness (i.e., the lowest cost per watt).
According to a WSJ article on First Solar’s latest investment plan, First Solar would still have to import around 40% of its modules from its plants in Malaysia and Vietnam after the setup of the third plant in Ohio. Nonetheless, Widmar told WSJ that the new plant will significantly reduce international freight costs.