Chinese solar panel maker Trina Solar is planning to build its third factory in Vietnam, three people familiar with the matter told Reuters, a move that would boost exports to the United States following punitive duties to be imposed on products it makes in Thailand. The company, one of the world’s biggest solar panel makers by sales, would invest $400 million in a plant spanning 25 hectares (60 acres) of industrial land, said the sources who asked not to be identified because the project details are private. Production is set to begin in 2025, one of the sources added.
The investment is part of a broader plan to raise capacity by 50 gigawatts to 70 G.W. over the next five years. This will include the expansion of wafer, cell, and module production and a new base in Xining that will help improve the company’s competitive position for N-type solar cells by optimizing their structure, according to Trina. The company will also pursue vertical integration and seek out project funds through debt and equity.
Trina, which has been expanding globally to capture business as the global demand for clean energy grows, has regional headquarters in Zurich and Fremont (USA Silicon Valley), R&D bases in Thailand and Vietnam, and offices or branches in Miami, Tokyo, and Singapore. It has shipped over 100 GW of modules and is committed to leading sustainability goals through innovative energy solutions and building a carbon-emissions-free world.
The company aims to boost its profit from businesses other than panels to around 66 percent of total earnings by 2025 from about 40 percent this year. In particular, demand for lithium is expected to quintuple to 800,000 tons a year by 2025 from about 200,000 tons last year. This will push prices down and could boost profits from the company’s other businesses.
Vietnam, Cambodia, Malaysia, and Thailand are the world’s top solar panel producers, accounting for over 80% of U.S. imports this year. The U.S. Department of Commerce has determined that the companies there circumvented antidumping and countervailing duty orders against China by shipping solar cells and panels to the United States. The tariffs are due to take effect in mid-2022.
The specific product to be made in the new Vietnam plant has yet to be announced, but it will likely be solar cells or silicon wafers, sources said. The company already operates two factories in the country, including one that began producing silicon wafers last month with an annual capacity of 6.5 GW. The company’s U.S. unit will use the wafers from the new plant to manufacture cells and modules for its utility, commercial, and residential customers in the United States. The company will be able to export the products to the United States without paying tariffs for the time being because of the DoC’s preliminary findings. This is a common practice in the industry.
