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Q CELLS to double solar manufacturing capacity in the U.S.

Q CELLS parent Hanwha plans to invest $170 million to expand its manufacturing facility in Dalton, Georgia.
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The Q CELLS solar module manufacturing facility, seen here from above, is the largest in the U.S. with a capacity of 1.7 GW per year. (Courtesy: Q Cells)

Korean solar energy giant Hanwha Solutions, the parent company of Q CELLS, said it plans to nearly double its U.S. manufacturing capacity.

Hanwha plans to spend $170 million to expand the Q CELLS solar module manufacturing facility in Dalton, Georgia. The investment would increase the facility's manufacturing capacity from 1.7 GW to 3.1 GW.

The capacity expansion would represent about one-third of the current U.S. solar module manufacturing capacity.

"Growing uncertainties tell us that securing reliable, sustainable energy has become more important than ever before," said Justin Lee, CEO of Hanwha Q CELLS. "To do this, Q CELLS will increase renewable supply from diversified sources and find cleaner ways to produce energy. That way, we will contribute to both energy security and net-zero emissions." 

As part of the plan, Hanwha said it also will invest $150 million to expand cell production capacity in Korea.

In April, the company agreed with Korean polysilicon manufacturer OCI to receive polysilicon made in factories using carbon-free hydroelectricity. OCI will provide Hanwha with “clean polysilicon” for the next 10 years. 

In March, the company became the largest shareholder of REC Silicon, a Norway-based polysilicon manufacturer that makes solar-grade polysilicon at its production facility in Moses Lake, Washington.

Hanwha said it would build out a multi-billion dollar, fully American solar supply chain if government incentives were approved to support domestic manufacturing.

Hanwha Q CELLS has supported the incentives within the Solar Energy Manufacturing for America (SEMA) Act. The bill passed in the U.S. House but has failed to garner a vote in the Senate.

Hanwha said it would make additional investments in the U.S. once a "long-term, durable" policy is enacted. Those investments could focus on wafer and cell production, the company said.

"Ensuring policy certainty is crucial to realizing our goal of rebuilding the U.S. solar value chain," said Lee.

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The U.S. solar supply chain is under heightened scrutiny amid a U.S. Dept. of Commerce anti-dumping and countervailing duties investigation. San Jose-based module manufacturer Auxin Solar has alleged that companies in Malaysia, Thailand, Cambodia, and Vietnam are skirting U.S. trade duties against China. Solar trade groups say the investigation itself is already causing significant project delays.

Hanwha has also committed to decarbonizing its solar manufacturing process.

In March, Hanwha became the largest shareholder in REC Silicon, which uses hydropower to make solar-grade polysilicon at its production facility in Moses Lake, Washington. The Moses Lake facility was shut down in mid-2019 when China imposed tariffs on U.S.-made polysilicon, in retaliation for tariffs slapped on Chinese-made solar panels in 2013. 

And in April, the company agreed with Korean polysilicon manufacturer OCI to receive polysilicon made in factories using carbon-free hydroelectricity. OCI will provide Hanwha with "clean polysilicon" for the next 10 years.

comprehensive analysis of the U.S. clean energy supply chain by the Department of Energy found that incentives could offset the higher costs for domestic solar PV manufacturing, which can be 30-40% higher. LG recently announced that it would exit the solar industry entirely, resulting in the closure of its Huntsville, Alabama manufacturing facility, because of "uncertainties" in the market.

DOE recommended that the U.S. expand thin-film module production, which isn't reliant on China for input materials. The agency suggested that cell production and establishing the first international standards for inverters also present opportunities to improve the domestic supply chain.

The U.S. solar PV supply chain will, above all else, need significant financial support from the federal government, the report notes. With the right support, the U.S. could take strategic actions on workforce development, manufacturing, human rights, and trade.

 A report by the Ultra Low Carbon Solar Alliance found that Chinese producers hold 83% of global capacity for polysilicon production, 96% for wafers, 79% for cells, and 70% for modules.

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