Hanwha Solutions to Build North America's Largest Solar Plant with 3.2 Trillion KRW Investment

Establishment of 'Solar Hub' Production Complex in Georgia, USA
Annual Production of 3.3GW Ingots and Wafers to Modules
Completion of Solar Battery Value Chain... Total 8.4GW

Hanwha Q CELLS Georgia Plant in the United States. Photo by Hanwha Solutions

[Asia Economy Reporter Donghoon Jung] Hanwha Solutions is investing approximately 3.2 trillion KRW to build the largest solar power plant in North America. This investment aligns with the rapid growth of the solar market following the implementation of the Inflation Reduction Act (IRA). The company envisions completing the solar value chain in North America, from raw materials such as ingots and wafers to cell and module production. The production complex has been named the 'Solar Hub.'

On the 11th, Lee Guyoung, CEO of Hanwha Solutions Q CELLS division, stated, "The establishment of the Solar Hub aims to maximize competitiveness by fully leveraging the U.S. government's energy transition policies. Once the Solar Hub is fully operational, we expect significant improvements in solar business sales and profitability."

North America's Largest Integrated Solar Production Complex ‘Solar Hub’ to Begin Full Operation Next Year

Hanwha Solutions' investment in the Solar Hub is the largest in the history of the U.S. solar energy industry. It is also the first time a single company has established production lines for all key solar value chain segments in North America.

Hanwha Solutions plans to invest a total of 3 trillion KRW in Cartersville, Georgia, constructing an integrated production complex with a capacity of 3.3GW each for ingots, wafers, cells, and modules, targeting commercial production by the end of next year. Among the five key stages of the solar value chain?'polysilicon-ingot-wafer-cell-module'?the company will produce four products at one site, excluding the raw material polysilicon.

Cartersville is located about a 55-minute drive from Atlanta, the capital of Georgia. It is approximately 33 minutes from Dalton, where the existing module factory is located, also in Georgia. The area offers locational advantages such as good accessibility, making logistics operations and workforce recruitment relatively easier.

In addition, Hanwha Solutions plans to expand the annual production capacity of its Dalton, Georgia plant, which began module mass production in 2019, from the current 1.7GW to 5.1GW by the end of this year. The company aims to complete a 1.4GW production line expansion in the first half of this year and add another 2GW by year-end.

Once the new expansions at the Dalton and Cartersville plants are completed by the end of next year, the local module production capacity will increase to a total of 8.4GW. This 8.4GW capacity is the largest in North America for solar companies producing silicon-based modules and can supply electricity for about 1.3 million U.S. households for one year.

Hanwha Solutions Aims to Cement No.1 Position in U.S. Solar Market Aligned with IRA

Hanwha Solutions expects that this large-scale investment will enable effective response to the IRA, which supports climate change mitigation and the renewable energy industry. Starting this year, when the IRA is fully enacted, companies producing solar products locally can receive various government supports, including tax credits. Additionally, by consolidating production lines for each value chain segment in one location, the company anticipates reducing logistics costs and improving operational efficiency, thereby strengthening cost competitiveness.

Hanwha Solutions is considering using polysilicon produced by REC Silicon, in which it acquired shares last year, for the Solar Hub production lines. REC Silicon is an eco-friendly polysilicon manufacturer based on hydropower, located in Moses Lake, Washington. It plans to mass-produce about 16,000 tons of polysilicon annually, sufficient for 5.3GW of cell production capacity, starting at the end of this year.

With the full operation of the Solar Hub from next year, Hanwha Solutions will have all five stages of the value chain production lines in North America, from basic materials like polysilicon to finished products like modules. The company expects to further solidify its No.1 position in the local market by selling 'Made in America' solar products produced entirely in the U.S., from raw materials to finished goods.

Wood Mackenzie, an energy market research firm, reported that Hanwha Solutions held the No.1 market share in the U.S. residential solar module market for 17 consecutive quarters and in the commercial solar module market for 12 consecutive quarters through the third quarter of last year.

CEO Lee Guyoung said, "The Solar Hub will become a core production base in the rapidly growing U.S. solar industry, which is expected to grow around 20% annually. We will continue to expand our renewable energy business to strengthen Korea-U.S. energy security and achieve carbon neutrality."