Canadian Solar Splits U.S. PV-Storage Business: Establishes JV + Transfers Production Capacity

On November 30th, CSI announced a major restructuring of its U.S. market operations, in conjunction with its controlling shareholder, Canadian Solar Inc. (CSIQ). The core strategy involves a combination of establishing new joint ventures and transferring equity in production capacity designated for the U.S. market, aiming to optimize the global business layout.

This transaction focuses on the solar and energy storage business in the U.S. market, with the specific plan divided into two main parts:

1. Establishment of New Joint Ventures to Deepen U.S. Local Solar and Storage Business

CSI will participate in U.S. manufacturing facilities for solar cells, solar modules, lithium iron phosphate (LFP) energy storage cells, battery packs, and DC energy storage systems by establishing new joint ventures, Company M and Company N, with CSIQ. Companies M and N will begin operations by leasing a portion of CSI's overseas assets.

Specific Transaction Details:

CSI Solar (CSI) plans to establish new joint ventures, Company M and Company N, with its controlling shareholder, CSIQ. CSI will hold a 24.9% stake, and CSIQ will hold a 75.1% stake in both JVs.

Company M will engage in the U.S. photovoltaic (PV) business, including operating U.S. solar cell and solar module factories.

Company N will engage in the U.S. energy storage business, including operating U.S. manufacturing facilities for LFP energy storage cells, battery packs, and DC energy storage systems.

Companies M and N will begin operations by leasing a portion of CSI's overseas assets. Considering the uncertainty in the time for acceptance and official commencement of operations for these leased assets, CSI will make a reasonable estimation for the rent in its 2026 related-party transactions. Future plans may include investing in new assets, acquiring assets at an opportune time, or introducing qualified third-party overseas investors.

1. Transfer of Equity in Overseas Factories Supplying the U.S. to Achieve Asset Optimization

CSI plans to restructure its manufacturing facilities located outside the U.S. but supplying the U.S. market, including the established overseas PV wafer factory (THX1), the overseas storage factory under construction (SSTH), and the overseas battery factory (GNCM), through equity transfer. The resulting ownership structure will be 75.1% for CSIQ and 24.9% for CSI.

Through this arrangement, CSI will receive a one-time equity transfer consideration, while retaining a 24.9% ongoing equity interest in the subsequent U.S. operations and recovering its prior investments.

The specific information of the equity transfer targets involved in this U.S. business restructuring is as follows:

Note: The overseas PV wafer production line has not yet been established as an independent company.

This business adjustment clearly defines the market division between the two entities:

CSIQ will focus on the U.S. market for the production, sales, and service of solar modules and energy storage systems. It will concentrate resources on the development of utility, electric power company, and large commercial & industrial (C&I) project customers in the U.S., focusing on meeting the country's energy transition needs.

CSI will focus on the global non-U.S. markets for modules, energy storage products, and system integration businesses, including regions such as Europe, Latin America, Asia, and the Middle East, strengthening its competitive advantage in the global non-U.S. markets.

Source：EnergyTrend