Hanwha invests $320M in cell and module manufacturing capacity expansions to meet growing solar demand

Hanwha invests $320M in cell and module manufacturing capacity expansions to meet growing solar demand
  •  Hanwha Solutions will expand its solar module factory in U.S. and cell production facility in Korea, to meet the growing global demand for reliable and sustainable energy.
  • The investments aim to provide a reliable supply of renewable energy amid growing market uncertainties. It will help countries hedge against rising fossil fuel prices to achieve their goals of energy security.
  • Hanwha also aims to boost supply of low-carbon polysilicon toward its solar manufacturing. By working with partners  around the world, the company aspires to realize its vision of being a "completely clean energy solutions provider." 

SEOUL, South Korea, May 12, 2022 /PRNewswire/ -- Hanwha Solutions, the Korean company that owns completely clean energy solutions provider Qcells, today announced a $320 million investment plan for solar manufacturing expansion in the United States and Korea with the aim of providing secure, cleaner energy amid mounting calls for energy security and net-zero emissions.

Hanwha said it will seek to spend $170 million building a 1.4-gigawatt solar module production facility in the US. Qcells already operates a 1.7 gigawatt module factory in Dalton, Georgia. With the newly-built factory expected to come online as early as the first half of 2023, Qcells' total production capacity in the U.S. will exceed 3 gigawatt – equivalent to one-third of current US solar module production capacity. 

 The company also announced its plan to expand cell production capacity in Korea. By investing $150 million, the company will expand its cell factory in there. When the factory expansions are complete next year, overall cell capacity in Korea will be 5.4-gigawatts. It is the first investment in Korean solar cell manufacturing in five years.

The investments aim to address growing demand for renewable energy, as ongoing energy market turbulence has sent fossil fuel prices soaring. Already worsened by a global supply squeeze during the pandemic, these price fluctuations have prompted calls around the world to reduce fossil fuel dependence aiming for energy security and carbon reduction.

 "Growing uncertainties tell us that securing reliable, sustainable energy has become more important than ever before," said Justin Lee, CEO of Hanwha Qcells. "To do this, Qcells 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." 

To improve and further decarbonize its solar panel production process, Hanwha Solutions will secure low-carbon polysilicon from manufacturers around the world. 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.

Other sources are providing low-carbon polysilicon to Hanwha as well. In March, the company became the largest shareholder of REC Silicon, the Norway-headquartered polysilicon manufacturer, which operates massive production facilities in the US. REC Silicon similarly uses hydropower to make solar-grade polysilicon at its production facility in Moses Lake, Washington.

Faced with soaring energy prices in Europe, the company also came up with solutions to lower heating bills. Qcells is working with Samsung Electronics to introduce a smart heating system with the aim of hitting the market in June. Combing Qcells' solar panels and energy storage system with Samsung's Eco Heating System, it will lower heating bills for households in Europe.

Hanwha Solutions' decision to expand the Qcells' module factory in the U.S. comes as a part of its effort to help rebuild the domestic US solar supply chain. It will create good-paying job opportunities for generations to come. Already employing approximately 750 staff at its module production facility in the U. S., Hanwha aims to further boost the number of local jobs with the opening of the new module production facility.

Upon the implementation of long-term, durable policy designed to incentivize solar manufacturing, Hanwha will further expand investments in the US, including wafers and cells. This requires implementing a "whole-of-government" approach, including smart trade policy, strengthened Buy American rules, and especially long-term domestic manufacturing tax legislation.

"Ensuring policy certainty is crucial to realizing our goal of rebuilding the US solar value chain," said Lee. "With our relentless efforts to provide reliable, sustainable energy, we will do our utmost to solidify Qcells as the dependable choice for the U.S. solar market."

About Hanwha Solutions.

Hanwha Solutions aims to deliver sustainable solutions for the planet through smart energy solutions and customer-focused materials. The Company operates its business through five divisions: Q CELLS, Chemical, Advanced Material, Galleria and City Development. The Q CELLS Division offers total energy solutions from photovoltaic module manufacturing, power plant operation to electricity retailing service. The Chemical Division, the first in Korea to produce polyvinyl chloride (PVC), manufactures various petrochemical products and eco-friendly plasticizers. The Advanced Materials Division produces high-tech materials for automotive, photovoltaic and electronic devices. The Galleria Division, an operator of premium department store chain, provides premium fashion and food services. The City Development Division is a leading real estate developer specializing in industrial complexes. With its innovative technologies for sustainable growth, Hanwha Solutions strives to become a global leader in bringing a better future for humanity.


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Source: Hanwha Solutions Related Stocks: Korea:009830
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